Diodes Incorporated (DIOD)

Short-term

Turnover ratios

Diodes Incorporated's Inventory turnover ratio shows a decreasing trend from March 2023 to December 2024. This ratio indicates the number of times inventory is sold and replaced over a period. A higher ratio is generally preferred as it signifies efficient inventory management. Despite some fluctuations, the company has managed to maintain a relatively healthy inventory turnover ratio throughout the period.

The Receivables turnover ratio, which measures how efficiently a company is collecting on its credit sales, is not provided in the data. Without this information, it is challenging to evaluate the company's effectiveness in collecting payments from customers.

Similarly, the Payables turnover ratio, which evaluates how quickly a company pays its suppliers, is not available in the data. This ratio is crucial in assessing the company's liquidity and supplier management practices.

The Working Capital turnover ratio, which measures the efficiency of a company in generating revenue from its working capital, has been fluctuating over the years. The company appears to have had varying levels of success in utilizing its working capital to generate sales during the period under review.

Overall, while the Inventory turnover ratio suggests efficient inventory management by Diodes Incorporated, the absence of data for Receivables turnover and Payables turnover ratios limits a comprehensive analysis of the company's overall activity ratios.

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Average number of days

Diodes Incorporated's Days of Inventory on Hand (DOH) ratio indicates the average number of days the company holds inventory before selling it. Over the analyzed period, the DOH ratio has fluctuated, starting at 108.89 days on March 31, 2020, increasing to a peak of 203.47 days on September 30, 2024, before decreasing to 196.34 days by December 31, 2024. A decreasing trend in the DOH ratio may suggest efficient inventory management.

The Days of Sales Outstanding (DSO) measure, which reflects how long it takes for the company to collect its accounts receivable, was not provided in the data, indicating a lack of information on this aspect of Diodes Incorporated's operations. Without this data, it is challenging to assess the efficiency of the company in collecting receivables from its customers.

The data does not provide the Number of Days of Payables, which would have allowed for an analysis of how long the company takes to pay its suppliers. This ratio is crucial for understanding the company's relationship with its suppliers and its cash flow management.

In conclusion, the firm's performance in managing inventory appears to have some fluctuations, but without information on sales outstanding and payables, a comprehensive assessment of Diodes Incorporated's overall working capital management and efficiency in converting assets and liabilities into sales revenue is limited.

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Long-term

Diodes Incorporated's fixed asset turnover ratio has shown fluctuations over the years, ranging from 2.32 to 3.18. The company's fixed asset turnover improved in the most recent periods, reaching 3.10 in both September and December 2021. However, there was a slight decline in the following periods, with the ratio settling around 2.61 to 2.88 in the most recent reported quarters.

In contrast, the total asset turnover ratio experienced a more erratic trend, starting at 0.76 in March 2020, dropping to 0.58 in September 2020, and then fluctuating between 0.62 and 0.87 in subsequent periods. The ratio gradually increased to 0.87 by December 2022, indicating that Diodes Incorporated was generating more revenue relative to its total assets.

Overall, these long-term activity ratios illustrate how efficiently Diodes Incorporated is utilizing its fixed assets to generate sales and how effectively it is leveraging its total assets to generate revenue. The fluctuations in these ratios can provide insights into the company's operational efficiency and asset management strategies, which may vary based on market conditions and business initiatives.