Diodes Incorporated (DIOD)

Return on equity (ROE)

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Net income (ttm)	US$ in thousands	227,182	293,941	331,607	329,742	331,283	304,745	286,783	262,002	228,763	192,985	151,713	117,372	98,088	115,543	126,451	141,702	153,250	135,579	128,427	117,211
Total stockholders’ equity	US$ in thousands	1,740,740	1,689,660	1,662,480	1,595,460	1,513,640	1,395,920	1,353,320	1,297,500	1,237,240	1,156,060	1,082,580	1,002,570	963,820	1,198,570	1,143,380	1,125,030	1,106,420	1,029,850	1,003,970	968,675
ROE		13.05%	17.40%	19.95%	20.67%	21.89%	21.83%	21.19%	20.19%	18.49%	16.69%	14.01%	11.71%	10.18%	9.64%	11.06%	12.60%	13.85%	13.16%	12.79%	12.10%

December 31, 2023 calculation

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

Diodes, Inc.'s Return on Equity (ROE) has fluctuated over the past eight quarters, ranging from a low of 13.05% in Q4 2023 to a high of 21.89% in Q4 2022. The decreasing trend in ROE over the recent quarters may indicate a decrease in profitability relative to the shareholder's equity.

There was a significant drop in ROE from Q4 2022 to Q1 2023, showing a decline from 21.89% to 20.67%. Despite slight improvements in Q2 and Q3 2023, the ROE has not fully recovered to previous levels.

While the ROE figures are above 10%, indicating that the company is generating profits from shareholders' equity, the decreasing trend suggests that the company may be facing challenges in efficiently utilizing its equity to generate returns. It is essential for investors to assess the reasons behind the declining ROE and the company's overall financial performance to make informed decisions regarding their investments in Diodes, Inc.