Diodes Incorporated (DIOD)

Working capital turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	1,311,120	1,661,740	2,000,580	1,805,160	1,229,220
Total current assets	US$ in thousands	1,224,150	1,187,380	1,161,670	1,187,670	1,023,990
Total current liabilities	US$ in thousands	375,596	393,498	432,530	471,034	509,762
Working capital turnover		1.55	2.09	2.74	2.52	2.39

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,311,120K ÷ ($1,224,150K – $375,596K)
= 1.55

The working capital turnover of Diodes Incorporated has shown fluctuations over the years based on the provided data. From December 31, 2020, to December 31, 2024, the trend indicates an initial increase in 2021, a further rise in 2022, followed by a decline in 2023 and a significant drop in 2024.

In 2020, the company's working capital turnover stood at 2.39, which increased to 2.52 in 2021, reflecting an improvement in how efficiently the firm is utilizing its working capital to generate sales. The ratio further improved to 2.74 in 2022, indicating an even better utilization of working capital in generating revenue. However, there was a notable decrease in the working capital turnover to 2.09 in 2023, suggesting a potential inefficiency in managing working capital relative to sales.

The most significant drop was observed in 2024, where the working capital turnover plummeted to 1.55, indicating a substantial decline in the company's ability to convert its working capital into revenue within that period. This could signal potential issues with managing working capital efficiently or a decrease in sales relative to the working capital employed.

Overall, these fluctuations in the working capital turnover ratio highlight the importance of closely monitoring and managing working capital effectively to optimize operational efficiency and financial performance.