Diodes Incorporated (DIOD)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	875,258	1,003,560	1,173,340	1,134,800	798,094
Inventory	US$ in thousands	474,948	389,774	360,281	348,622	307,062
Inventory turnover		1.84	2.57	3.26	3.26	2.60

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $875,258K ÷ $474,948K
= 1.84

The inventory turnover ratio of Diodes Incorporated has shown some fluctuations over the past five years. In 2020, the company had an inventory turnover of 2.60, indicating that its inventory was turned over approximately 2.6 times during the year. This ratio increased to 3.26 by the end of both 2021 and 2022, suggesting a more efficient management of inventory during those years.

However, in 2023, the inventory turnover ratio decreased to 2.57, indicating a slight decline in the efficiency of converting inventory into sales. This trend continued into 2024, where the inventory turnover ratio dropped further to 1.84, suggesting a potential accumulation of excess inventory or slower sales turnover.

Overall, the inventory turnover ratios of Diodes Incorporated demonstrate varying levels of efficiency in managing and selling inventory during the period, with the company experiencing both improvements and setbacks in this aspect of its operations.