Diodes Incorporated (DIOD)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 196.34 | 203.47 | 191.12 | 167.26 | 141.76 | 115.80 | 104.47 | 107.53 | 112.08 | 116.65 | 116.89 | 117.89 | 112.13 | 109.56 | 113.14 | 119.23 | 140.43 | 124.64 | 121.99 | 108.89 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 196.34 | 203.47 | 191.12 | 167.26 | 141.76 | 115.80 | 104.47 | 107.53 | 112.08 | 116.65 | 116.89 | 117.89 | 112.13 | 109.56 | 113.14 | 119.23 | 140.43 | 124.64 | 121.99 | 108.89 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 196.34 + — – —
= 196.34
The cash conversion cycle of Diodes Incorporated has shown fluctuations over the analyzed period. It started at 108.89 days on March 31, 2020, increased to 140.43 days by December 31, 2020, and then decreased to 104.47 days by June 30, 2023. However, the cycle spiked significantly to 203.47 days by September 30, 2024, before moderating slightly to 196.34 days by December 31, 2024.
The cash conversion cycle represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales. A longer cash conversion cycle may indicate inefficiencies in managing inventory, collecting receivables, or paying suppliers, which can tie up cash and impact liquidity. On the other hand, a shorter cycle suggests improved efficiency in managing working capital.
Diodes Incorporated should focus on managing its working capital effectively to optimize its cash conversion cycle and improve overall liquidity and operational efficiency. Monitoring this metric regularly can help the company identify areas for improvement and implement strategies to enhance cash flow management.
Peer comparison
Dec 31, 2024