Diodes Incorporated (DIOD)

Current ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total current assets	US$ in thousands	1,187,380	1,161,670	1,187,670	1,023,990	809,959
Total current liabilities	US$ in thousands	393,498	432,530	471,034	509,762	285,322
Current ratio		3.02	2.69	2.52	2.01	2.84

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $1,187,380K ÷ $393,498K
= 3.02

The current ratio of Diodes, Inc. has exhibited fluctuations over the past five years. In 2023, the current ratio improved significantly to 3.02, indicating strong short-term liquidity and the company's ability to cover its current liabilities with its current assets. This increase in the current ratio from the previous year suggests an enhancement in the company's ability to meet its short-term obligations.

In 2022, the current ratio was 2.69, still reflecting a solid liquidity position, although slightly lower compared to 2023. The company maintained a stable current ratio above 2 in 2021 and 2019, with ratios of 2.52 and 2.84 respectively. These ratios indicate a healthy liquidity position in those years, showing that Diodes, Inc. had sufficient current assets to cover its current liabilities.

The lowest current ratio in the analyzed period was in 2020, at 2.01. This level, although above 1 and indicating a capacity to meet short-term obligations, was relatively weaker compared to the other years in consideration.

Overall, the trend in Diodes, Inc.'s current ratio demonstrates a generally positive liquidity position, with fluctuations reflecting varying levels of liquidity year over year. The significant improvement in the current ratio in 2023 suggests a strengthening of the company's liquidity position, which is a positive indicator for investors, creditors, and other stakeholders.