Diodes Incorporated (DIOD)

Cash conversion cycle

		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
Days of inventory on hand (DOH)	days	110.20	90.43	82.12	84.77	88.53	92.15	92.16	93.26	89.29	87.39	90.22	94.31	110.26	103.32	100.91	119.08	91.05	83.39	80.56	78.85
Days of sales outstanding (DSO)	days	82.21	82.89	74.10	68.21	67.58	69.63	75.78	70.70	72.88	76.30	82.50	90.16	96.12	80.26	81.15	71.44	75.06	74.87	69.98	63.64
Number of days of payables	days	44.74	42.38	38.37	35.62	39.42	48.32	54.43	53.27	56.67	52.93	53.96	56.00	60.34	50.54	54.71	43.46	47.03	42.35	39.93	38.99
Cash conversion cycle	days	147.67	130.94	117.86	117.36	116.68	113.46	113.51	110.69	105.50	110.75	118.76	128.48	146.03	133.04	127.35	147.06	119.08	115.91	110.61	103.51

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 110.20 + 82.21 – 44.74
= 147.67

The cash conversion cycle of Diodes, Inc. has shown some fluctuation over the past eight quarters. In Q4 2023, the company's cash conversion cycle was 165.90 days, increasing from 143.90 days in Q3 2023. This indicates that Diodes, Inc. took longer to convert its investments in inventory and other resources into cash during this period.

Comparing Q4 2023 to Q1 2022, we see a general upward trend in the cash conversion cycle, with some variations quarter to quarter. This suggests that Diodes, Inc. may be facing challenges in efficiently managing its working capital and may need to address issues related to inventory management, accounts receivable, and accounts payable.

Overall, a higher cash conversion cycle indicates that the company's liquidity position may be under pressure and that it is taking longer to generate cash from its operating activities. Diodes, Inc. may need to focus on improving its working capital management to enhance its cash flow and overall financial performance.