Diodes Incorporated (DIOD)
Working capital turnover
Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Revenue (ttm) | US$ in thousands | 1,311,120 | 1,294,521 | 1,349,089 | 1,496,470 | 1,661,739 | 1,835,252 | 1,951,878 | 1,985,698 | 2,000,580 | 1,984,539 | 1,934,688 | 1,874,164 | 1,805,162 | 1,675,361 | 1,513,398 | 1,361,619 | 1,229,215 | 1,180,002 | 1,194,217 | 1,227,554 |
Total current assets | US$ in thousands | 1,224,150 | 1,262,440 | 1,220,460 | 1,201,230 | 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 |
Total current liabilities | US$ in thousands | 375,596 | 352,783 | 360,955 | 377,279 | 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 |
Working capital turnover | 1.55 | 1.42 | 1.57 | 1.82 | 2.09 | 2.39 | 2.61 | 2.71 | 2.74 | 2.59 | 2.71 | 2.72 | 2.52 | 2.71 | 2.60 | 2.21 | 2.39 | 1.32 | 1.49 | 2.31 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,311,120K ÷ ($1,224,150K – $375,596K)
= 1.55
Diodes Incorporated's working capital turnover ratio has fluctuated over the analyzed period. The ratio measures the company's ability to efficiently utilize its working capital to generate sales revenue. In March 2020, the working capital turnover was 2.31, indicating that Diodes converted its working capital into sales 2.31 times during the year.
The ratio decreased by June 2020 to 1.49, signaling a decline in the efficiency of working capital management. This trend continued until December 2020 when the ratio improved to 2.39, suggesting a better utilization of working capital leading to higher sales.
From March 2021 to September 2022, the working capital turnover ratio remained relatively stable, ranging between 2.21 to 2.74. This indicates that Diodes consistently converted its working capital into sales at a relatively efficient rate during this period.
However, the ratio started declining from March 2023 to December 2024, reaching a low of 1.42 in September 2024. This downward trend suggests potential challenges in effectively leveraging working capital for generating sales revenue during this period.
In conclusion, while the working capital turnover ratio of Diodes Incorporated has shown fluctuations, it is essential for the company to focus on efficiently managing its working capital to support sustainable growth and profitability in the future.
Peer comparison
Dec 31, 2024