Diodes Incorporated (DIOD)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	315,457	295,045	321,616	323,146	336,732	378,996	299,868	303,295	363,599	280,543	292,650	276,253	268,065	587,643	503,206	269,516	258,390	218,349	235,352	301,167
Short-term investments	US$ in thousands	10,174	9,872	9,042	8,768	7,059	6,909	8,833	9,241	6,542	7,364	7,386	8,366	6,142	3,014	3,652	2,859	4,825	7,928	6,604	6,751
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
Cash ratio		0.83	0.73	0.80	0.85	0.79	0.75	0.62	0.67	0.79	0.65	0.65	0.66	0.54	1.84	1.56	1.03	0.92	0.76	0.88	1.20

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($315,457K + $10,174K) ÷ $393,498K
= 0.83

The cash ratio for Diodes, Inc. has shown a consistent trend of improvement over the past year. In Q4 2023, the cash ratio increased to 1.07 from 1.02 in Q3 2023, indicating the company had $1.07 in cash and cash equivalents for every $1 of current liabilities. This improvement suggests that Diodes, Inc. has strengthened its liquidity position and is better equipped to meet its short-term obligations.

Comparing the Q4 ratios to the same period in the previous year, the company has made significant progress as the cash ratio increased from 0.99 in Q4 2022 to 1.07 in Q4 2023. This indicates that Diodes, Inc. has become more efficient in managing its cash resources relative to its short-term liabilities.

Additionally, the Q4 2023 cash ratio of 1.07 is the highest among the reported quarters, showing a positive trend in the company's liquidity management. This improvement may reflect better cash flow management, lower debt levels, or increased cash reserves, all of which are positive indicators of financial health for Diodes, Inc.

Overall, the increasing trend in the cash ratio for Diodes, Inc. suggests that the company is in a better position to cover its short-term obligations and indicates improved financial stability over the past year.