Diodes Incorporated (DIOD)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,367,660 | 2,288,310 | 2,194,500 | 1,979,460 | 1,639,380 |
| Total stockholders’ equity | US$ in thousands | 1,740,740 | 1,513,640 | 1,237,240 | 963,820 | 1,106,420 |
| Financial leverage ratio | 1.36 | 1.51 | 1.77 | 2.05 | 1.48 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,367,660K ÷ $1,740,740K
= 1.36
The financial leverage ratio of Diodes, Inc. has exhibited varying trends over the past five years. The ratio has been on a declining trend from 2.05 in 2020 to 1.36 in 2023, with fluctuations in between.
A financial leverage ratio of 1.36 as of December 31, 2023 indicates that Diodes, Inc. is relying less on debt financing and more on equity to fund its operations and growth. This may suggest a lower level of financial risk, as the company has reduced its dependence on borrowed funds.
The decreasing trend in the financial leverage ratio could be attributed to various factors such as improved profitability, increased equity investment, or a reduction in debt levels. It indicates a healthier financial position for the company, as lower leverage ratios are generally viewed more favorably by investors and creditors.
Overall, the decreasing trend in Diodes, Inc.'s financial leverage ratio over the past five years signals a shift towards a more conservative capital structure and potentially stronger financial stability.
Peer comparison
Dec 31, 2023