Diodes Incorporated (DIOD)

Receivables turnover

		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
Revenue (ttm)	US$ in thousands	1,651,266	1,823,884	1,936,362	1,974,817	1,994,331	1,979,149	1,932,418	1,869,138	1,795,386	1,668,079	1,500,365	1,344,860	1,215,429	1,190,516	1,208,265	1,245,348	1,265,885	1,254,874	1,252,002	1,234,344
Receivables	US$ in thousands	371,930	414,188	393,132	369,054	369,233	377,549	401,196	362,035	358,496	348,688	339,142	332,209	320,061	261,782	268,618	243,746	260,322	257,421	240,056	215,229
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

December 31, 2023 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $1,651,266K ÷ $371,930K
= 4.44

The receivables turnover ratio of Diodes, Inc. has exhibited some variation over the past eight quarters, ranging from a low of 4.43 in Q3 2023 to a high of 5.42 in Q4 2022. Generally, the company collects its accounts receivable approximately 4.5 to 5.5 times per year, indicating that, on average, it takes the company around 65 to 81 days to collect its outstanding receivables.

A decreasing trend in the receivables turnover ratio could suggest that the company is taking longer to collect its receivables, which could potentially indicate credit issues with customers or inefficient collection processes. Conversely, an increasing trend in the ratio may indicate improving efficiency in collecting outstanding payments.

It is essential for Diodes, Inc. to monitor its receivables turnover consistently to ensure timely collections and efficient management of its accounts receivable, which ultimately impacts the company's cash flow and liquidity position.