Diodes Incorporated (DIOD)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 39.82% | 41.40% | 37.34% | 35.70% | 36.91% |
| Operating profit margin | 15.16% | 20.43% | 15.37% | 11.12% | 15.90% |
| Pretax margin | 16.61% | 19.42% | 17.13% | 9.87% | 15.64% |
| Net profit margin | 13.75% | 16.58% | 12.74% | 8.12% | 12.14% |
Diodes, Inc.'s profitability ratios have shown fluctuations over the past five years. The gross profit margin has ranged from 35.07% in 2020 to 41.35% in 2022, indicating variability in the company's ability to control its cost of goods sold. The operating profit margin also fluctuated, with a high of 20.22% in 2022 and a low of 10.94% in 2020, suggesting changes in operating efficiency and cost management.
The pretax margin has shown variability as well, ranging from 9.79% in 2020 to 19.79% in 2022. This metric reflects the company's ability to generate profits before accounting for taxes and indicates fluctuations in operational performance and financial management. The net profit margin, reflecting the company's overall profitability, has ranged from 7.98% in 2020 to 16.56% in 2022, with a downward trend in recent years.
Overall, the fluctuations in Diodes, Inc.'s profitability ratios suggest varying levels of efficiency and effectiveness in managing costs, generating profits, and controlling expenses over the past five years. Further analysis of the factors contributing to these fluctuations would be necessary to assess the company's overall financial health and performance.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 10.58% | 17.84% | 12.58% | 6.79% | 12.24% |
| Return on assets (ROA) | 9.60% | 14.48% | 10.42% | 4.96% | 9.35% |
| Return on total capital | 15.94% | 23.86% | 20.96% | 10.45% | 17.53% |
| Return on equity (ROE) | 13.05% | 21.89% | 18.49% | 10.18% | 13.85% |
Diodes, Inc. has shown a consistent performance in terms of profitability ratios over the past five years.
1. Operating Return on Assets (Operating ROA):
- The Operating ROA has ranged from 6.79% to 17.68% over the period. It decreased in 2023 to 10.56% from 17.68% in 2022, indicating a decrease in operating efficiency compared to the previous year.
2. Return on Assets (ROA):
- The ROA has varied between 4.96% and 14.48% during the period. It decreased in 2023 to 9.60% from 14.48% in 2022, which indicates that the company was able to generate less profit per dollar of assets compared to the previous year.
3. Return on Total Capital:
- The Return on Total Capital has ranged from 9.50% to 23.81% over the five years. The ratio decreased in 2023 to 13.87% from 23.81% in 2022, suggesting a lower return on the total invested capital in the business.
4. Return on Equity (ROE):
- The Return on Equity varied between 10.18% and 21.89% during the period. It decreased in 2023 to 13.05% from 21.89% in 2022, indicating that shareholders' returns on their investments decreased in the most recent year.
Overall, Diodes, Inc. has generally delivered solid returns to both its shareholders and debtholders, though there has been a slight decline in profitability ratios in 2023 compared to the previous year. It will be crucial for the company to closely monitor and address the factors contributing to this decline to ensure sustained profitability and value creation for its stakeholders.