Diodes Incorporated (DIOD)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	1,740,740	1,513,640	1,237,240	963,820	1,106,420
ROE		13.05%	21.89%	18.49%	10.18%	13.85%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $227,182K ÷ $1,740,740K
= 13.05%

The return on equity (ROE) for Diodes, Inc. has fluctuated over the past five years. In 2023, the ROE stood at 13.05%, showing a decrease from the previous year's 21.89%. This decline suggests a reduction in the company's ability to generate profits from shareholders' equity compared to the prior year.

Comparing the current ROE to two years ago, in 2021, when it was 18.49%, we observe a similar trend of diminishing returns. The ROE was notably lower in 2020, at 10.18%, indicating a less efficient utilization of equity to generate earnings.

However, the ROE rebounded in 2019 to 13.85%, showing an improvement compared to 2020 but still below the levels seen in 2021 and 2022.

Overall, the trend in Diodes, Inc.'s ROE suggests some variability in the company's profitability relative to shareholders' equity over the past five years. It may be important for stakeholders to further investigate the reasons behind these fluctuations to better understand the company's financial performance and sustainability.