Diodes Incorporated (DIOD)

Debt-to-capital ratio

		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
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
Debt-to-capital ratio		0.01	0.01	0.03	0.05	0.09	0.15	0.15	0.13	0.18	0.16	0.17	0.25	0.23	0.22	0.20	0.04	0.06	0.08	0.12	0.16

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $16,979K ÷ ($16,979K + $1,740,740K)
= 0.01

The debt-to-capital ratio of Diodes, Inc. has been relatively stable over the past eight quarters, ranging from 0.03 to 0.17. A lower debt-to-capital ratio indicates that Diodes, Inc. relies less on debt to finance its operations and growth, which is generally considered favorable as it signifies lower financial risk.

The ratio decreased from 0.17 in Q3 2022 to 0.03 in Q4 2023, which is a significant improvement and indicates that the company has made efforts to reduce its debt relative to its capital base.

Although there was a slight increase in the ratio in Q2 2023 to 0.05 and Q1 2023 to 0.07, it remained relatively low compared to previous periods. This suggests that Diodes, Inc. has a conservative approach to debt management and is maintaining a healthy balance between debt and equity financing.

Overall, the trend in Diodes, Inc.'s debt-to-capital ratio demonstrates a prudent financial strategy in managing its capital structure and indicates a strong position in terms of financial health and stability.