Diodes Incorporated (DIOD)

Return on assets (ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	227,182	331,283	228,763	98,088	153,250
Total assets	US$ in thousands	2,367,660	2,288,310	2,194,500	1,979,460	1,639,380
ROA		9.60%	14.48%	10.42%	4.96%	9.35%

December 31, 2023 calculation

ROA = Net income ÷ Total assets
= $227,182K ÷ $2,367,660K
= 9.60%

Diodes, Inc.'s return on assets (ROA) has fluctuated over the past five years, as evident from the provided data. In 2023, the ROA was recorded at 9.60%, showing a decline from the previous year when it stood at 14.48%. Despite this decrease, the company's ROA in 2023 remains relatively healthy compared to 2020 and 2019 when it was 4.96% and 9.35%, respectively.

The ROA measures the company's ability to generate profits from its assets, indicating how efficiently management is utilizing its assets to generate earnings. A higher ROA implies better asset utilization and profitability. The decline in ROA from 2022 to 2023 may suggest a possible decrease in asset efficiency or profitability during that year.

It is essential for Diodes, Inc. to further analyze the factors contributing to the fluctuation in ROA over the years to identify areas of improvement. By focusing on enhancing asset management and profitability, the company can work towards maintaining a sustainable and competitive ROA in the future.