Alpha and Omega Semiconductor Ltd (AOSL)

Solvency ratios

	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019
Debt-to-assets ratio	0.02	0.03	0.03	0.03	0.03	0.03	0.03	0.04	0.03	0.04	0.01	0.08	0.08	0.10	0.11	0.12	0.13	0.10	0.10	0.07
Debt-to-capital ratio	0.03	0.03	0.04	0.04	0.04	0.04	0.05	0.05	0.05	0.06	0.02	0.16	0.17	0.21	0.22	0.24	0.25	0.20	0.21	0.16
Debt-to-equity ratio	0.03	0.03	0.04	0.04	0.04	0.05	0.05	0.05	0.05	0.07	0.02	0.19	0.21	0.26	0.28	0.32	0.34	0.26	0.26	0.19
Financial leverage ratio	1.28	1.30	1.32	1.36	1.36	1.41	1.43	1.48	1.52	1.46	1.40	2.47	2.46	2.53	2.57	2.63	2.70	2.65	2.63	2.63

Alpha and Omega Semiconductor Ltd's solvency ratios exhibit some consistency in the debt levels and leverage over the past few quarters. The debt-to-assets ratio has been relatively stable around 0.03, indicating that the company's debt level is low compared to its total assets. Similarly, the debt-to-capital and debt-to-equity ratios have also maintained a consistent range of 0.03 to 0.07 and 0.03 to 0.07, respectively, suggesting a conservative capital structure.

Notably, the financial leverage ratio has been gradually increasing from 1.28 to 1.46 over the quarters, except for a significant spike in the third quarter of 2021 to 2.47, which may signal increased financial risk during that period. However, the ratio has since declined and stabilized around 1.46 to 1.52, indicating that the company has been managing its leverage within acceptable levels.

Overall, Alpha and Omega Semiconductor Ltd's solvency ratios reflect a prudent approach to managing debt and leverage, with a focus on maintaining a healthy balance sheet and financial stability.

Coverage ratios

	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019
Interest coverage	-17.55	1.21	-11.47	19.68	73.62	74.48	190.64	164.72	104.55	91.53	55.85	40.09	29.56	17.26	5.56	-1.12	-5.01	-2.11	0.14	0.80

The interest coverage ratio of Alpha and Omega Semiconductor Ltd has fluctuated significantly over the past few quarters. The trend indicates that the company has experienced periods of both robust and weak ability to cover its interest expenses with operating income.

From December 2019 to June 2020, the interest coverage ratio was negative, indicating that the company's operating income was insufficient to cover its interest expenses during those periods. However, starting from September 2020, the interest coverage ratio improved consistently, reaching a peak in December 2022. This suggests that the company's operating income was significantly higher than its interest expenses during that period.

In the most recent quarters, the interest coverage ratio has deteriorated, with negative results in June 2024. This indicates a potential strain on the company's ability to cover its interest expenses with its current level of operating income.

Overall, the analysis of Alpha and Omega Semiconductor Ltd's interest coverage ratio highlights both strengths and weaknesses in its financial performance, suggesting a need for close monitoring of its ability to meet its interest obligations in the future.