Diodes Incorporated (DIOD)

Working capital 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 current assets	US$ in thousands	1,187,380	1,182,580	1,160,390	1,121,770	1,161,670	1,276,560	1,214,610	1,152,090	1,187,670	1,063,880	1,042,480	1,050,350	1,023,990	1,214,690	1,126,480	796,446	809,959	763,035	756,654	780,990
Total current liabilities	US$ in thousands	393,498	414,907	412,956	390,346	432,530	511,541	499,977	463,493	471,034	444,625	460,205	432,838	509,762	321,533	325,335	264,117	285,322	297,704	275,411	256,143
Working capital turnover		2.08	2.38	2.59	2.70	2.74	2.59	2.70	2.71	2.51	2.69	2.58	2.18	2.36	1.33	1.51	2.34	2.41	2.70	2.60	2.35

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,651,266K ÷ ($1,187,380K – $393,498K)
= 2.08

The working capital turnover ratio for Diodes, Inc. fluctuated over the past eight quarters, ranging from a low of 2.09 in Q4 2023 to a high of 2.74 in Q4 2022. This ratio indicates how efficiently the company is utilizing its working capital to generate sales revenue.

A higher working capital turnover ratio suggests that the company is effectively managing its working capital and converting it into sales. The decreasing trend from Q4 2022 to Q4 2023 may be a cause for concern, as it could indicate that Diodes, Inc. is becoming less efficient in utilizing its working capital to drive sales.

It is important for the company to closely monitor and analyze the components that influence working capital turnover, such as accounts receivable, inventory, and accounts payable, to identify areas for improvement and implement appropriate strategies to enhance efficiency and profitability.