Diodes Incorporated (DIOD)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 308,671 | 315,457 | 336,732 | 363,599 | 268,065 |
| Short-term investments | US$ in thousands | 7,464 | 10,174 | 7,059 | 6,542 | 6,142 |
| Total current liabilities | US$ in thousands | 375,596 | 393,498 | 432,530 | 471,034 | 509,762 |
| Cash ratio | 0.84 | 0.83 | 0.79 | 0.79 | 0.54 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($308,671K
+ $7,464K)
÷ $375,596K
= 0.84
The cash ratio of Diodes Incorporated has shown a consistent improvement over the years from 0.54 on December 31, 2020, to 0.84 on December 31, 2024. This indicates that the company has increased its ability to cover its short-term liabilities with cash and cash equivalents. A higher cash ratio signifies a stronger liquidity position, suggesting that Diodes Incorporated has a sufficient amount of cash on hand to meet its immediate financial obligations. This upward trend in the cash ratio reflects positively on the company's financial management and liquidity position, providing a buffer against unforeseen circumstances or financial challenges.
Peer comparison
Dec 31, 2024