Diodes Incorporated (DIOD)

Activity ratios

Short-term

Turnover ratios

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
Inventory turnover 3.31 4.04 4.44 4.31 4.12 3.96 3.96 3.91 4.09 4.18 4.05 3.87 3.31 3.53 3.62 3.07 4.01 4.38 4.53 4.63
Receivables turnover 4.44 4.40 4.93 5.35 5.40 5.24 4.82 5.16 5.01 4.78 4.42 4.05 3.80 4.55 4.50 5.11 4.86 4.87 5.22 5.74
Payables turnover 8.16 8.61 9.51 10.25 9.26 7.55 6.71 6.85 6.44 6.90 6.76 6.52 6.05 7.22 6.67 8.40 7.76 8.62 9.14 9.36
Working capital turnover 2.08 2.38 2.59 2.70 2.74 2.59 2.70 2.71 2.51 2.69 2.58 2.18 2.36 1.33 1.51 2.34 2.41 2.70 2.60 2.35

Diodes, Inc.'s activity ratios provide insights into the efficiency of the company's management of its assets and liabilities.

1. Inventory turnover: The inventory turnover ratio measures how efficiently Diodes, Inc. is managing its inventory. The trend shows a slight decrease from Q1 2023 to Q4 2023, indicating that the company is taking slightly longer to sell its inventory.

2. Receivables turnover: The receivables turnover ratio reflects how quickly Diodes, Inc. is collecting payments from its customers. The decreasing trend from Q1 2023 to Q4 2023 suggests that the company may be facing challenges in collecting payments promptly.

3. Payables turnover: The payables turnover ratio indicates how quickly Diodes, Inc. is paying off its suppliers. The increasing trend in payables turnover from Q1 2023 to Q4 2023 shows that the company is taking longer to settle its payables, which may indicate improved cash flow management.

4. Working capital turnover: The working capital turnover ratio measures how effectively Diodes, Inc. is utilizing its working capital to generate sales. The consistent trend in working capital turnover from Q1 2023 to Q4 2023 indicates that the company is maintaining a stable level of efficiency in using its working capital to support its operations.

Overall, while Diodes, Inc. shows some fluctuations in its activity ratios, it is important for the company to closely monitor and manage these ratios to ensure optimal efficiency in its operations and financial performance.

Average number of days

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
Days of inventory on hand (DOH) days 110.20 90.43 82.12 84.77 88.53 92.15 92.16 93.26 89.29 87.39 90.22 94.31 110.26 103.32 100.91 119.08 91.05 83.39 80.56 78.85
Days of sales outstanding (DSO) days 82.21 82.89 74.10 68.21 67.58 69.63 75.78 70.70 72.88 76.30 82.50 90.16 96.12 80.26 81.15 71.44 75.06 74.87 69.98 63.64
Number of days of payables days 44.74 42.38 38.37 35.62 39.42 48.32 54.43 53.27 56.67 52.93 53.96 56.00 60.34 50.54 54.71 43.46 47.03 42.35 39.93 38.99

Diodes, Inc.'s activity ratios provide insights into the efficiency of the company's operations. The days of inventory on hand (DOH) increased from Q1 2023 to Q4 2023, indicating that the company held inventory for a longer period, which may tie up working capital and increase holding costs.

On the other hand, the days of sales outstanding (DSO) fluctuated over the quarters but generally improved from Q1 2022 to Q4 2023. A decreasing trend in DSO suggests that the company is collecting its accounts receivable more efficiently, translating to faster cash conversion from sales.

The number of days of payables decreased from Q1 2023 to Q4 2023, indicating that the company took less time to pay its suppliers. This could signal improved liquidity management but may also suggest potential strain on supplier relationships if the company is negotiating more stringent payment terms.

In summary, while Diodes, Inc. has made progress in managing its receivables and payables turnover, there may be opportunities to optimize its inventory management to enhance overall operational efficiency.

Long-term

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
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
Total asset turnover 0.70 0.78 0.83 0.86 0.87 0.84 0.85 0.86 0.82 0.82 0.75 0.68 0.61 0.59 0.62 0.77 0.77 0.78 0.78 0.77

The long-term activity ratios of Diodes, Inc. provide insights into how efficiently the company is utilizing its assets to generate revenue over time.

The fixed asset turnover has been decreasing steadily from Q1 2022 to Q4 2023, indicating that the company is generating less revenue per dollar of fixed assets. This could suggest that the company's fixed assets may not be as efficiently utilized as in the past. The ratio peaked at 3.18 in Q1 2022 and has decreased to 2.23 in Q4 2023.

On the other hand, the total asset turnover has also shown a declining trend over the same period. The ratio has fluctuated slightly but remained relatively stable around 0.87 from Q4 2022 to Q1 2023 before decreasing to 0.70 in Q4 2023. A lower total asset turnover ratio could indicate that the company is not generating as much revenue relative to its total assets.

Overall, the decreasing trends in both the fixed asset turnover and total asset turnover ratios suggest that Diodes, Inc. may be facing challenges in efficiently utilizing its assets to generate revenue. Further analysis and investigation into the company's operations and asset management strategies may be necessary to address these trends and improve the overall efficiency of the company's asset utilization.