Diodes Incorporated (DIOD)

Net profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	44,024	227,182	331,283	228,763	98,088
Revenue	US$ in thousands	1,311,120	1,661,740	2,000,580	1,805,160	1,229,220
Net profit margin		3.36%	13.67%	16.56%	12.67%	7.98%

December 31, 2024 calculation

Net profit margin = Net income ÷ Revenue
= $44,024K ÷ $1,311,120K
= 3.36%

Based on the provided data, Diodes Incorporated has shown varying levels of net profit margin over the past five years. The net profit margin indicates the percentage of revenue that translates into profit after all expenses have been deducted.

In December 2020, Diodes Incorporated's net profit margin was 7.98%, which increased to 12.67% by December 2021, reflecting improved profitability. The company's net profit margin continued to rise significantly to 16.56% by December 2022, indicating strong control over costs and efficient operations.

However, there was a slight dip in profitability by December 2023, with the net profit margin decreasing to 13.67%. This could be attributed to various factors such as changes in the market dynamics, cost fluctuations, or investment decisions.

The most notable change occurred in December 2024, where the net profit margin plummeted to 3.36%, marking a substantial decline in profitability for Diodes Incorporated. This significant decrease could raise concerns about the company's ability to generate profits and manage expenses effectively.

In conclusion, while Diodes Incorporated demonstrated a steady improvement in profitability over the years, the notable decline in net profit margin in December 2024 raises questions about the company's financial performance and the need for further analysis to understand the underlying reasons for the decrease.