Diodes Incorporated (DIOD)
Total asset 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 |
| Total assets | US$ in thousands | 2,367,660 | 2,288,310 | 2,194,500 | 1,979,460 | 1,639,380 |
| Total asset turnover | 0.70 | 0.87 | 0.82 | 0.61 | 0.77 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $1,652,820K ÷ $2,367,660K
= 0.70
Total asset turnover is a financial ratio that measures a company's efficiency in generating sales revenue from its investment in total assets. It indicates how well the company is utilizing its assets to generate revenue.
Diodes, Inc.'s total asset turnover has fluctuated over the past five years, as follows: 0.76 in 2019, 0.62 in 2020, 0.82 in 2021, 0.87 in 2022, and 0.70 in 2023. A higher total asset turnover ratio generally indicates better efficiency in asset utilization.
The higher total asset turnover in 2022 and 2021 suggests that the company was more efficient in generating sales from its assets during those years. However, the decrease in 2023 to 0.70 could signal a decline in the company's efficiency in utilizing its assets to generate revenue.
Further analysis of the reasons behind these fluctuations, such as changes in sales revenue or asset management practices, would be necessary to fully understand the implications of the total asset turnover ratio for Diodes, Inc.
Peer comparison
Dec 31, 2023