Diodes Incorporated (DIOD)

Total asset 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
Total assets	US$ in thousands	2,367,660	2,340,220	2,341,070	2,285,560	2,288,310	2,362,560	2,285,040	2,165,460	2,194,500	2,041,910	1,992,970	1,990,340	1,979,460	2,032,650	1,937,160	1,620,270	1,639,380	1,609,810	1,614,160	1,613,000
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

December 31, 2023 calculation

Total asset turnover = Revenue (ttm) ÷ Total assets
= $1,651,266K ÷ $2,367,660K
= 0.70

Total asset turnover measures the efficiency with which Diodes, Inc. generates sales revenue relative to its total assets. Looking at the trend over the past eight quarters, there appears to be some fluctuation in the total asset turnover ratio.

In Q1 2022, the total asset turnover was 0.87, suggesting that for every dollar of total assets, the company generated $0.87 in sales revenue. This ratio remained relatively stable in Q2 2022 and Q3 2022 at 0.85 and 0.84, respectively. However, there was a slight increase in Q4 2022 to 0.87.

Subsequently, in Q1 2023, there was a noticeable drop in the total asset turnover to 0.87, which indicates that Diodes, Inc. was less efficient in utilizing its assets to generate revenue during that period. The ratio continued to decline in Q2 2023 to 0.83, before decreasing further in Q3 2023 to 0.78.

The most recent data point in Q4 2023 shows a total asset turnover of 0.70, hitting the lowest level in the past eight quarters. This decline suggests that the company may be facing challenges in maximizing sales relative to its total asset base.

Overall, the trend in total asset turnover for Diodes, Inc. indicates some variability in the efficiency of asset utilization for revenue generation over the quarters analyzed. It may be beneficial for the company to further investigate the reasons behind these fluctuations and consider strategies to improve its asset turnover ratio in the future.