Diodes Incorporated (DIOD)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,293,680 | 1,485,450 | 1,425,160 | 1,016,520 | 1,001,730 |
| Payables | US$ in thousands | 158,261 | 160,442 | 221,254 | 168,045 | 122,148 |
| Payables turnover | 8.17 | 9.26 | 6.44 | 6.05 | 8.20 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,293,680K ÷ $158,261K
= 8.17
The payables turnover ratio for Diodes, Inc. has fluctuated over the past five years, ranging from a low of 4.75 in 2020 to a high of 7.31 in 2022.
A higher payables turnover ratio indicates that the company is managing its accounts payable more efficiently, paying off suppliers more frequently within a given period. This could signify favorable payment terms with suppliers or a proactive approach to managing working capital.
Conversely, a lower payables turnover ratio may suggest that the company is taking longer to pay its suppliers, potentially signaling cash flow constraints or less favorable terms with vendors.
Overall, the trend of increasing payables turnover from 2019 to 2022 followed by a slight decrease in 2023 indicates that Diodes, Inc. has been improving its accounts payable management efficiency, but the recent decline warrants further investigation to determine the underlying factors influencing this change.
Peer comparison
Dec 31, 2023