Diodes Incorporated (DIOD)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 1,795,300 | 1,740,740 | 1,513,640 | 1,237,240 | 963,820 |
| ROE | 2.45% | 13.05% | 21.89% | 18.49% | 10.18% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $44,024K ÷ $1,795,300K
= 2.45%
Diodes Incorporated's return on equity (ROE) has shown fluctuations over the years, as evidenced by the provided data. The ROE increased from 10.18% in December 31, 2020, to 18.49% in December 31, 2021, indicating an improvement in the company's ability to generate profits from shareholders' equity.
Subsequently, there was a significant increase to 21.89% by December 31, 2022, suggesting a further enhancement in the company's profitability relative to its equity base. However, the ROE decreased to 13.05% by December 31, 2023, reflecting a slight decline in the efficiency of utilizing equity to generate profits.
The most notable decline occurred by December 31, 2024, where the ROE dropped significantly to 2.45%. This sharp decrease in ROE may raise concerns about the company's ability to generate returns for shareholders relative to the equity invested.
Overall, Diodes Incorporated's ROE demonstrates variability over the years, reflecting fluctuations in profitability and the efficiency of utilizing equity. It is essential for stakeholders to further analyze the factors influencing these fluctuations to assess the company's financial performance and sustainability in the long term.
Peer comparison
Dec 31, 2024