Power Integrations Inc (POWI)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	215,582	284,231	342,638	244,728	207,267
Inventory	US$ in thousands	163,164	135,420	99,266	102,878	90,380
Inventory turnover		1.32	2.10	3.45	2.38	2.29

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $215,582K ÷ $163,164K
= 1.32

The inventory turnover ratio for Power Integrations Inc. has shown fluctuations over the past five years. It decreased from 3.45 in 2021 to 1.32 in 2023, indicating a slower rate of inventory turnover in the most recent period. A lower inventory turnover could suggest potential issues such as excess inventory levels or challenges in selling products efficiently. It is important for the company to closely monitor and manage its inventory levels to improve this ratio and optimize its working capital and operational efficiency.