Diodes Incorporated (DIOD)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.33 | 1.32 | 1.33 | 1.35 | 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 |
Diodes Incorporated has consistently maintained a low level of debt relative to its assets, capital, and equity, as indicated by its debt-to-assets, debt-to-capital, and debt-to-equity ratios remaining at 0.00 throughout the period from March 31, 2020, to December 31, 2024. This demonstrates the company's strong financial position and minimal reliance on external borrowing to fund its operations and growth.
The financial leverage ratio, which assesses the extent of a company's financial leverage, shows a decreasing trend from 1.44 on March 31, 2020, to 1.33 on December 31, 2024. This decline indicates that Diodes Incorporated has been gradually reducing its reliance on debt financing relative to equity over the years. A decreasing financial leverage ratio can be a positive sign as it suggests a lower level of financial risk and potential for higher financial stability in the long run.
Overall, based on the solvency ratios analyzed, Diodes Incorporated appears to have a strong financial position with prudent debt management practices, indicating its ability to meet its financial obligations and support sustainable growth in the future.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 22.27 | 29.11 | 37.91 | 44.47 | 46.49 | 41.21 | 39.28 | 43.59 | 49.21 | 63.69 | 72.73 | 60.20 | 40.04 | 22.32 | 15.10 | 11.78 | 11.57 | 16.65 | 21.87 | 26.49 |
Diodes Incorporated has shown varying levels of interest coverage over the reported periods. The interest coverage ratio measures the company's ability to meet its interest obligations with its operating income. A higher interest coverage ratio indicates a company is more capable of servicing its debt.
From March 31, 2020, to June 30, 2020, the interest coverage ratio declined from 26.49 to 21.87, reflecting a slight decrease. Subsequently, until December 31, 2021, the interest coverage ratio continued to decrease significantly to 11.57. During this period, the company's ability to cover its interest payments declined, which could raise concerns about its financial health.
However, from March 31, 2022, to June 30, 2022, there was a substantial improvement in the interest coverage ratio, jumping from 60.20 to 72.73. This indicates an impressive recovery in the company's ability to cover its interest expenses, possibly due to improved operational performance.
The interest coverage ratio remained relatively stable from September 30, 2022, to December 31, 2024, hovering around the range of 20 to 50. While the ratio fluctuated slightly, it generally suggests that Diodes Incorporated maintained a healthy level of coverage for its interest payments during this period.
Overall, the fluctuations in Diodes Incorporated's interest coverage ratio over the reported periods indicate varying levels of financial strength and ability to service its debt obligations. It is important for investors and stakeholders to monitor these trends to assess the company's financial stability and risk profile.