Diodes Incorporated (DIOD)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.01 | 0.01 | 0.02 | 0.04 | 0.06 | 0.11 | 0.10 | 0.09 | 0.12 | 0.11 | 0.11 | 0.16 | 0.15 | 0.16 | 0.15 | 0.03 | 0.04 | 0.05 | 0.09 | 0.12 |
| Debt-to-capital ratio | 0.01 | 0.01 | 0.03 | 0.05 | 0.09 | 0.15 | 0.15 | 0.13 | 0.18 | 0.16 | 0.17 | 0.25 | 0.23 | 0.22 | 0.20 | 0.04 | 0.06 | 0.08 | 0.12 | 0.16 |
| Debt-to-equity ratio | 0.01 | 0.01 | 0.03 | 0.06 | 0.10 | 0.18 | 0.17 | 0.15 | 0.21 | 0.19 | 0.21 | 0.33 | 0.30 | 0.28 | 0.25 | 0.04 | 0.06 | 0.09 | 0.14 | 0.19 |
| 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 |
Based on the solvency ratios of Diodes, Inc. over the past eight quarters, we can observe the following trends:
1. Debt-to-assets ratio: This ratio measures the proportion of a company's assets that are financed by debt. The trend for Diodes, Inc. shows a slight increase from 0.03 in Q4 2022 to 0.05 in Q1 2023, followed by a decrease to 0.02 in Q2 2023. The ratio has remained relatively low and stable, indicating a conservative level of debt usage to finance its assets.
2. Debt-to-capital ratio: This ratio assesses the extent to which a company is using debt to finance its operations compared to its total capital. Diodes, Inc. has shown a similar trend to the debt-to-assets ratio, with a gradual increase from 0.03 in Q4 2022 to 0.07 in Q1 2023, followed by a decrease to 0.03 in Q3 2023. This ratio also suggests prudent capital structure management.
3. Debt-to-equity ratio: This ratio evaluates the proportion of a company's equity that is financed by debt. Diodes, Inc. has displayed a comparable pattern to the previous ratios, with a peak of 0.12 in Q1 2023 and a subsequent decline to 0.03 in Q2 2023. This indicates that the company has been reducing its reliance on debt to fund its operations.
4. Financial leverage ratio: This ratio measures the extent to which a company is using debt to support its assets. The trend for Diodes, Inc. has shown a decrease from 1.51 in Q4 2022 to 1.39 in Q3 2023. This declining trend suggests that the company is becoming less reliant on debt to leverage its operations.
Overall, the solvency ratios of Diodes, Inc. reflect a conservative approach to debt management and capital structure. The company has maintained a low level of debt relative to its assets, capital, and equity, indicating a strong financial position and prudent risk management practices.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 49.15 | 42.90 | 39.95 | 42.38 | 47.63 | 61.79 | 72.35 | 61.62 | 42.06 | 23.81 | 15.64 | 11.79 | 11.22 | 16.22 | 21.74 | 26.75 | 26.01 | 22.37 | 21.09 | 18.69 |
The interest coverage ratio measures a company's ability to pay its interest expenses on outstanding debt. A higher ratio indicates a stronger ability to meet interest obligations.
Diodes, Inc.'s interest coverage has shown varying trends over the past eight quarters. In Q1 2023, the interest coverage ratio was 84.30, indicating a slight decline from the previous quarter's ratio of 96.37. However, the ratios in Q1 2023 and Q4 2022 are still relatively strong, indicating the company's ability to cover its interest expenses comfortably.
The interest coverage ratios in Q3 and Q2 2022 were notably higher at 121.19 and 174.92, respectively, suggesting a robust ability to meet interest obligations during those periods. The ratio saw a slight decrease in Q1 2022 to 126.53 but remained at a healthy level.
Overall, the interest coverage ratio for Diodes, Inc. has demonstrated stability and adequacy in recent quarters, with some fluctuations but generally remaining at levels that signify the company's ability to service its debt obligations effectively. It would be important for the company to monitor this ratio closely to ensure continued financial health and liquidity.