Diodes Incorporated (DIOD)

Financial leverage 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
Total assets	US$ in thousands	2,367,660	2,340,220	2,341,070	2,285,560	2,288,310	2,362,560	2,285,040	2,165,460	2,194,500	2,041,910	1,992,970	1,990,340	1,979,460	2,032,650	1,937,160	1,620,270	1,639,380	1,609,810	1,614,160	1,613,000
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
Financial leverage ratio		1.36	1.39	1.41	1.43	1.51	1.69	1.69	1.67	1.77	1.77	1.84	1.99	2.05	1.70	1.69	1.44	1.48	1.56	1.61	1.67

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 been gradually decreasing over the past few quarters, indicating a downward trend in the company's leverage levels. The ratio has declined from 1.69 in Q3 2022 to 1.36 in Q4 2023, reflecting a reduction in the company's reliance on debt to finance its operations and investments.

A lower financial leverage ratio suggests that the company is less reliant on borrowed funds and has a healthier balance sheet structure. It indicates that Diodes, Inc. has been successful in managing its debt levels and improving its financial stability over the period analyzed.

Overall, the decreasing trend in the financial leverage ratio is a positive sign for Diodes, Inc. as it indicates a more conservative approach to debt financing and a stronger financial position.