Diodes Incorporated (DIOD)

Return on total capital

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	280,167	396,288	315,061	130,862	205,274
Long-term debt	US$ in thousands	16,979	147,470	265,574	288,179	64,401
Total stockholders’ equity	US$ in thousands	1,740,740	1,513,640	1,237,240	963,820	1,106,420
Return on total capital		15.94%	23.86%	20.96%	10.45%	17.53%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $280,167K ÷ ($16,979K + $1,740,740K)
= 15.94%

The return on total capital for Diodes, Inc. has shown some fluctuations over the past five years. In 2023, the return on total capital was 13.87%, a decrease from the previous year's 23.81%. Despite the decrease, it remains at a relatively healthy level. The performance in 2022 was particularly strong at 23.81%, showcasing effective utilization of both debt and equity to generate profits. The return on total capital in 2021 was 17.96%, indicating a solid performance as well. In 2020, there was a slight decrease to 9.50%, suggesting potentially lower profitability or less efficient capital allocation. However, this was followed by an improvement in 2019, with a return on total capital of 14.46%. Overall, Diodes, Inc. has generally maintained a positive return on total capital over the years, although there have been some fluctuations that may require further investigation to understand the underlying factors driving these changes.