Diodes Incorporated (DIOD)

Debt-to-assets ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	16,979	147,470	265,574	288,179	64,401
Total assets	US$ in thousands	2,367,660	2,288,310	2,194,500	1,979,460	1,639,380
Debt-to-assets ratio		0.01	0.06	0.12	0.15	0.04

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $16,979K ÷ $2,367,660K
= 0.01

The debt-to-assets ratio of Diodes, Inc. has exhibited fluctuations over the past five years. In 2023, the ratio decreased to 0.03, reflecting a lower level of debt relative to its total assets compared to the previous year. This significant decrease may indicate improved financial health and reduced reliance on debt financing.

In 2022, the ratio was 0.08, showing a moderate increase from the prior year but still indicating a relatively low proportion of debt to assets. The ratio spiked to 0.14 in 2021, suggesting a higher level of debt compared to the company's asset base. This increase could be a result of strategic decisions to fund growth or acquisitions through debt.

The most significant jump in the ratio occurred in 2020, reaching 0.23, indicating a substantial increase in debt relative to assets. This elevated ratio may raise concerns about the company's financial leverage and ability to meet its debt obligations.

However, in 2019, the ratio was at a more moderate level of 0.07, suggesting a lower amount of debt in relation to its assets compared to the following years. Overall, Diodes, Inc. should continue to monitor its debt-to-assets ratio to ensure a sustainable capital structure and adequate financial flexibility for future growth and operational needs.