Diodes Incorporated (DIOD)

Return on total capital

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	280,167	347,972	396,962	395,735	396,288	409,132	384,457	353,762	315,061	245,637	197,798	156,643	130,862	152,059	165,971	187,084	205,274	188,939	184,675	173,571
Long-term debt	US$ in thousands	16,979	22,645	54,575	89,636	147,470	251,174	229,912	192,538	265,574	218,000	222,712	327,007	288,179	330,766	282,271	46,011	64,401	87,939	141,919	187,378
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
Return on total capital		15.94%	20.32%	23.12%	23.48%	23.86%	24.84%	24.28%	23.74%	20.96%	17.88%	15.15%	11.78%	10.45%	9.94%	11.64%	15.98%	17.53%	16.90%	16.12%	15.01%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (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 a fluctuating trend over the past eight quarters. The return on total capital ranged from a low of 13.87% in Q4 2023 to a high of 23.81% in Q4 2022.

In the most recent quarters, there has been a slight decrease in the return on total capital, with Q4 2023 at 13.87% compared to Q3 2023 at 18.66%. However, the return on total capital is still within a reasonable range, indicating that Diodes, Inc. is effectively generating returns from both its debt and equity capital.

Overall, the return on total capital for Diodes, Inc. has been relatively stable and at healthy levels, suggesting that the company has been efficient in utilizing its total capital to generate profits for its investors.