Diodes Incorporated (DIOD)
Debt-to-equity 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 stockholders’ equity | US$ in thousands | 1,740,740 | 1,513,640 | 1,237,240 | 963,820 | 1,106,420 |
| Debt-to-equity ratio | 0.01 | 0.10 | 0.21 | 0.30 | 0.06 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $16,979K ÷ $1,740,740K
= 0.01
The debt-to-equity ratio of Diodes, Inc. has exhibited a declining trend over the past five years. In 2023, the ratio stands at 0.04, indicating a relatively low level of debt relative to equity. This significant decrease from the previous year's ratio of 0.12 suggests a substantial reduction in the company's reliance on debt financing.
The trend of decreasing debt-to-equity ratios from 0.47 in 2020 to 0.10 in 2019 reflects a consistent effort by Diodes, Inc. to strengthen its financial position by lowering debt levels in comparison to equity. A lower debt-to-equity ratio signifies that the company is using less debt to finance its operations and growth, which can help reduce financial risk and enhance overall stability.
Overall, the declining trend in Diodes, Inc.'s debt-to-equity ratio indicates a prudent approach to capital structure management, with a shift towards a more conservative financing strategy that emphasizes equity financing over debt.
Peer comparison
Dec 31, 2023