Diodes Incorporated (DIOD)

Working capital 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 current assets	US$ in thousands	1,187,380	1,161,670	1,187,670	1,023,990	809,959
Total current liabilities	US$ in thousands	393,498	432,530	471,034	509,762	285,322
Working capital turnover		2.08	2.74	2.51	2.35	2.41

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,652,820K ÷ ($1,187,380K – $393,498K)
= 2.08

Diodes, Inc.'s working capital turnover has shown some fluctuations over the past five years, ranging from 2.09 to 2.74. This ratio indicates how efficiently the company is utilizing its working capital to generate sales revenue. A higher working capital turnover is generally preferred as it suggests that the company is able to generate more sales with less investment in its current assets.

In 2023, the working capital turnover decreased to 2.09 from 2.74 in 2022, signaling a decrease in the efficiency of Diodes, Inc. in utilizing its working capital to generate revenue. This could be a result of various factors such as changes in the company's sales volume, inventory management, or accounts receivable collection.

Overall, Diodes, Inc. has maintained a working capital turnover above 2 throughout the five-year period, indicating that the company has been effective in managing its working capital to drive sales. However, the fluctuations in the ratio warrant further analysis to identify any underlying trends or issues that may be impacting the company's working capital efficiency.