Diodes Incorporated (DIOD)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 53,530 | 250,571 | 404,260 | 322,031 | 131,558 |
| Interest expense | US$ in thousands | 2,334 | 5,700 | 8,320 | 7,491 | 11,662 |
| Interest coverage | 22.93 | 43.96 | 48.59 | 42.99 | 11.28 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $53,530K ÷ $2,334K
= 22.93
Diodes Incorporated has shown a consistent improvement in its interest coverage ratio over the years, reflecting strong financial health and ability to meet interest obligations comfortably. The interest coverage ratio has increased from 11.28 in 2020 to 42.99 in 2021, further rising to 48.59 in 2022. Although there was a slight dip to 43.96 in 2023, the ratio remained at a relatively high level. In 2024, the interest coverage ratio decreased to 22.93, indicating a potential reduction in the company's ability to cover its interest expenses compared to the previous year. Overall, the trend suggests that Diodes Incorporated has been efficiently managing its interest payments relative to its earnings, which is a positive indicator for investors and creditors.
Peer comparison
Dec 31, 2024