Diodes Incorporated (DIOD)

Liquidity ratios

	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
Current ratio	3.02	2.85	2.81	2.87	2.69	2.50	2.43	2.49	2.52	2.39	2.27	2.43	2.01	3.78	3.46	3.02	2.84	2.56	2.75	3.05
Quick ratio	1.77	1.73	1.75	1.80	1.65	1.49	1.42	1.46	1.55	1.43	1.39	1.43	1.17	2.65	2.38	1.95	1.83	1.62	1.75	2.04
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

Diodes, Inc. has shown stable liquidity ratios over the past eight quarters. The current ratio has consistently been above 2, indicating a strong ability to cover short-term obligations with current assets. This trend demonstrates a healthy liquidity position, with Q4 2023 showing the highest current ratio of 3.02.

The quick ratio, which excludes inventory from current assets, has also remained relatively stable above 1.5. This indicates that Diodes, Inc. can meet its short-term liabilities without relying on inventory to generate cash quickly. However, the quick ratio has not seen significant variations, hovering around 2 over the quarters.

The cash ratio, which measures the company's ability to cover immediate liabilities with cash and cash equivalents, has generally been above 1. This suggests that Diodes, Inc. could settle its most pressing obligations solely with its cash reserves, reflecting a strong cash position.

Overall, Diodes, Inc. has maintained a robust liquidity position throughout the quarters, with current, quick, and cash ratios consistently above industry benchmarks. This indicates the company's ability to meet its short-term financial obligations effectively.

Additional liquidity measure

		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 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

The cash conversion cycle of Diodes, Inc. has fluctuated over the past eight quarters, ranging from a low of 121.06 days in Q1 2022 to a high of 165.90 days in Q4 2023. Overall, the trend seems to be increasing during the period, indicating potential inefficiencies in managing the company's cash flow and working capital.

A cash conversion cycle measures 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 suggest that the company is taking longer to sell its inventory, collect receivables, or pay its suppliers, which can tie up cash and potentially impact liquidity.

Diodes, Inc. should closely monitor its cash conversion cycle and investigate the underlying reasons for the increasing trend. Strategies to improve efficiency in inventory management, accounts receivable collection, and accounts payable turnover may help reduce the cash conversion cycle and enhance the company's overall financial performance and liquidity position.