Diodes Incorporated (DIOD)

Return on assets (ROA)

		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
Total assets	US$ in thousands	2,386,280	2,367,660	2,288,310	2,194,500	1,979,460
ROA		1.84%	9.60%	14.48%	10.42%	4.96%

December 31, 2024 calculation

ROA = Net income ÷ Total assets
= $44,024K ÷ $2,386,280K
= 1.84%

Diodes Incorporated's Return on Assets (ROA) has shown volatility during the period under review. The company's ROA increased significantly from 4.96% as of December 31, 2020, to 14.48% as of December 31, 2022, indicating a notable improvement in the company's ability to generate profit from its assets. However, in the following year, the ROA decreased to 9.60%, suggesting a slight decline in efficiency in asset utilization.

The most recent data point, as of December 31, 2024, shows a steep drop in ROA to 1.84%, which might be a cause for concern as it indicates a significant decrease in profitability relative to the assets employed by the company. This decline could be attributed to various factors such as a decrease in revenue, an increase in expenses, or inefficient asset management.

Overall, while Diodes Incorporated experienced fluctuations in ROA over the years, it is essential for the company to closely monitor and assess its asset utilization efficiency to ensure sustainable profitability and long-term growth.