Diodes Incorporated (DIOD)

Short-term

Turnover ratios

Diodes Incorporated's inventory turnover ratio has shown a fluctuating trend over the years. It increased from 2.60 in 2020 to 3.26 in 2021 and remained stable at 3.26 in 2022. However, there was a slight decline to 2.57 in 2023 and a more significant drop to 1.84 in 2024. This indicates that the company may have faced challenges in managing its inventory efficiently in the most recent year.

The receivables turnover ratio for Diodes Incorporated is not provided for any of the years, indicating that the company's management of accounts receivable turnover is not available for analysis.

Similarly, the payables turnover ratio data is not available for any of the years, which suggests that the company's management of accounts payable turnover is also not disclosed.

The working capital turnover ratio, on the other hand, shows a consistent decrease over the years from 2.39 in 2020 to 1.55 in 2024. This indicates that the efficiency of utilizing working capital to generate sales has decreased over time, possibly due to increased operational inefficiencies or changes in the company's working capital management strategies.

Overall, the activity ratios of Diodes Incorporated highlight fluctuations in inventory turnover and a decreasing trend in working capital turnover, pointing towards areas that may require closer attention and potential improvements in inventory management and working capital efficiency.

---

Average number of days

Based on the provided data for Diodes Incorporated, let's analyze the activity ratios:

1. Days of Inventory on Hand (DOH):
- As of December 31, 2020, the company had 140.43 days of inventory on hand, which decreased to 112.13 days by December 31, 2021, and further decreased to 112.08 days by December 31, 2022. This indicates that the company was able to manage its inventory more efficiently over the years, potentially reducing storage costs and improving cash flow.
- However, there was a significant increase in the days of inventory on hand to 141.76 days by December 31, 2023, and then a further increase to 198.06 days by December 31, 2024. These increases may suggest potential issues such as excess inventory levels or difficulties in selling products, which could impact the company's liquidity and profitability.

2. Days of Sales Outstanding (DSO):
- The data provided does not include information on the days of sales outstanding for Diodes Incorporated across the years. Days of sales outstanding is a critical metric in assessing the efficiency of a company's accounts receivable management.

3. Number of Days of Payables:
- Similarly, there is no data available on the number of days of payables for the company. The number of days of payables is crucial in understanding how long a company takes to pay its suppliers, which can impact cash flow and relationships with vendors.

In conclusion, while Diodes Incorporated showed improvement in managing its inventory in the earlier years, there was a concerning increase in inventory days in the later years. Without information on days of sales outstanding and days of payables, a comprehensive analysis of the company's overall activity ratios is limited.

---

Long-term

Diodes Incorporated's long-term activity ratios indicate the efficiency with which the company is utilizing its assets. The Fixed Asset Turnover ratio has shown a varying trend over the years, from 2.32 in 2020 to 3.10 in 2021, then declining to 2.72 in 2022, with no data available for 2023 and 2024. This suggests that the company has improved its ability to generate sales from its fixed assets between 2020 and 2021 but experienced a slight decrease in efficiency in 2022.

On the other hand, the Total Asset Turnover ratio has also displayed fluctuations, starting at 0.62 in 2020, increasing to 0.82 in 2021 and further to 0.87 in 2022, then declining to 0.70 in 2023, and 0.55 in 2024. This ratio indicates the overall efficiency of the company in generating sales from all its assets. The upward trend from 2020 to 2022 suggests an improvement in asset utilization efficiency, but the decrease in 2023 and 2024 indicates a potential decline in this aspect.

Overall, while Diodes Incorporated has shown improvement in utilizing its fixed assets to generate sales over the past few years, the trend in total asset turnover suggests a need for further analysis to identify any underlying factors affecting the company's asset utilization efficiency.