Diodes Incorporated (DIOD)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 33.24% | 39.61% | 41.35% | 37.14% | 35.07% |
| Operating profit margin | 3.85% | 15.08% | 20.40% | 15.29% | 10.93% |
| Pretax margin | 4.26% | 16.52% | 19.79% | 17.46% | 9.79% |
| Net profit margin | 3.36% | 13.67% | 16.56% | 12.67% | 7.98% |
Diodes Incorporated has shown a consistent improvement in its gross profit margin over the years, rising from 35.07% in 2020 to 41.35% in 2022, before dipping slightly to 39.61% in 2023 and then decreasing significantly to 33.24% in 2024.
In terms of operating profit margin, the company displayed a notable increase from 10.93% in 2020 to 20.40% in 2022, followed by a drop to 15.08% in 2023, and a substantial decline to 3.85% in 2024.
The trend in pretax margin also showed growth, climbing from 9.79% in 2020 to 19.79% in 2022, before slipping to 16.52% in 2023 and decreasing sharply to 4.26% in 2024.
Finally, the net profit margin of Diodes Incorporated experienced a positive trajectory, with an increase from 7.98% in 2020 to 16.56% in 2022, followed by a slight decline to 13.67% in 2023, and a significant decrease to 3.36% in 2024.
Overall, Diodes Incorporated's profitability ratios indicate fluctuations in its margins over the years, with a mix of positive growth and declines, reflecting varying levels of operational efficiency and profitability.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 2.11% | 10.58% | 17.84% | 12.58% | 6.79% |
| Return on assets (ROA) | 1.84% | 9.60% | 14.48% | 10.42% | 4.96% |
| Return on total capital | 2.98% | 14.39% | 26.71% | 26.03% | 13.65% |
| Return on equity (ROE) | 2.45% | 13.05% | 21.89% | 18.49% | 10.18% |
Diodes Incorporated has shown a positive trend in its profitability ratios over the years, as indicated by key ratios such as Return on Assets (ROA), Operating Return on Assets (Operating ROA), Return on Total Capital, and Return on Equity (ROE).
Starting with Operating ROA, the company's performance improved significantly from 6.79% in December 2020 to 17.84% in December 2022 before experiencing a slight dip to 10.58% by December 2023 and further dropping to 2.11% by December 2024. This suggests that although the company was able to generate operating income efficiently in 2022, there was some decline in subsequent years.
In terms of ROA, Diodes Incorporated demonstrated a similar positive trajectory, with ROA increasing from 4.96% in December 2020 to 14.48% in December 2022. However, there was a decrease to 9.60% by December 2023 and a significant drop to 1.84% by December 2024, indicating that the company's ability to efficiently generate profits from its assets declined in the last year.
Looking at Return on Total Capital, the company's performance improved notably from 13.65% in December 2020 to 26.71% in December 2022, before dropping to 14.39% by December 2023 and further declining to 2.98% by December 2024. This indicates that Diodes Incorporated was able to effectively utilize its total capital to generate returns, especially in 2022.
Finally, focusing on ROE, the company's return to shareholders also followed a similar pattern of improvement and subsequent decline. The ROE increased from 10.18% in December 2020 to 21.89% in December 2022, before decreasing to 13.05% by December 2023 and dropping significantly to 2.45% by December 2024. This signifies that the company's profitability in relation to shareholders' equity was strong in 2022 but weakened in the following years.
In conclusion, while Diodes Incorporated demonstrated improved profitability ratios in the mid-years, it experienced declines in profitability in the more recent years. It is essential for the company to assess and address the factors contributing to the declining trend to maintain and enhance its financial performance in the future.