Diodes Incorporated (DIOD)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,386,280 | 2,367,660 | 2,288,310 | 2,194,500 | 1,979,460 |
| Total stockholders’ equity | US$ in thousands | 1,795,300 | 1,740,740 | 1,513,640 | 1,237,240 | 963,820 |
| Financial leverage ratio | 1.33 | 1.36 | 1.51 | 1.77 | 2.05 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,386,280K ÷ $1,795,300K
= 1.33
The financial leverage ratio of Diodes Incorporated has shown a decreasing trend over the years, indicating a more conservative approach to utilizing debt in its capital structure. The ratio decreased from 2.05 in 2020 to 1.33 in 2024. This decline suggests that the company has been gradually reducing its reliance on debt to finance its operations and investments. A lower financial leverage ratio typically signifies a lower risk of financial distress and greater financial stability. Diodes Incorporated's declining financial leverage ratio reflects a prudent debt management strategy, which may enhance its creditworthiness and overall financial health.
Peer comparison
Dec 31, 2024