Diodes Incorporated (DIOD)

Fixed asset turnover

		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	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	1,651,266	1,823,884	1,936,362	1,974,817	1,994,331	1,979,149	1,932,418	1,869,138	1,795,386	1,668,079	1,500,365	1,344,860	1,215,429	1,190,516	1,208,265	1,245,348	1,265,885	1,254,874	1,252,002	1,234,344
Property, plant and equipment	US$ in thousands	746,169	736,126	748,115	755,707	736,730	698,452	671,654	589,915	582,079	540,520	522,182	510,467	530,815	453,487	450,615	456,122	469,574	468,122	470,690	441,215
Fixed asset turnover		2.21	2.48	2.59	2.61	2.71	2.83	2.88	3.17	3.08	3.09	2.87	2.63	2.29	2.63	2.68	2.73	2.70	2.68	2.66	2.80

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $1,651,266K ÷ $746,169K
= 2.21

Diodes, Inc.'s fixed asset turnover ratio measures the efficiency with which the company generates sales revenue from its fixed assets. A higher fixed asset turnover ratio indicates that the company is able to generate more sales using fewer fixed assets.

Looking at the trend in Diodes, Inc.'s fixed asset turnover ratio over the past eight quarters, we observe a general decrease from Q1 2022 to Q1 2023. The ratio declined from 3.18 in Q1 2022 to 2.63 in Q1 2023, indicating a decrease in the efficiency of the company in generating sales from its fixed assets.

Although the fixed asset turnover ratio for Q4 2023 increased from the previous quarter to 2.23, it is still lower than the ratios recorded in the previous year. This suggests that Diodes, Inc. is not effectively utilizing its fixed assets to generate sales compared to the previous quarters.

Overall, the declining trend in the fixed asset turnover ratio of Diodes, Inc. indicates that the company may need to review its fixed asset utilization strategy and consider measures to improve the efficiency of generating sales from its fixed assets. It is essential for the company to closely monitor and optimize its asset management practices to enhance operational performance and profitability.