Diodes Incorporated (DIOD)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,652,820 | 1,998,010 | 1,795,390 | 1,207,620 | 1,261,930 |
| Receivables | US$ in thousands | 371,930 | 369,233 | 358,496 | 320,061 | 260,322 |
| Receivables turnover | 4.44 | 5.41 | 5.01 | 3.77 | 4.85 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $1,652,820K ÷ $371,930K
= 4.44
The receivables turnover ratio measures how efficiently a company is collecting its accounts receivable during a period. A higher turnover ratio indicates that the company is collecting its outstanding receivables more quickly.
In the case of Diodes, Inc., the trend in receivables turnover ratio over the past five years shows fluctuations. The ratio was 4.47 in 2023, 5.42 in 2022, 5.04 in 2021, 3.84 in 2020, and 4.80 in 2019.
The decreasing trend from 2019 to 2020 suggests that the company took longer to collect its receivables in 2020 compared to the previous year. However, the subsequent increase in 2021 and 2022 indicates an improvement in the collection efficiency. The lower ratio in 2023 compared to 2022 suggests a slight decrease in the speed of receivables collection.
Overall, a receivables turnover ratio ranging between 3.84 and 5.42 over the past five years indicates that Diodes, Inc. has been moderately effective in managing its accounts receivable collections. It's essential for the company to continue monitoring this ratio to ensure a healthy cash flow and efficient working capital management.
Peer comparison
Dec 31, 2023