Power Integrations Inc (POWI)

Inventory turnover

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
Cost of revenue (ttm) US$ in thousands 194,222 189,538 196,438 207,150 215,582 229,699 238,331 255,097 284,231 306,293 323,132 334,786 342,638 339,848 316,371 280,870 244,728 224,272 218,740 216,737
Inventory US$ in thousands 165,612 167,680 169,884 167,865 163,164 150,246 149,741 142,444 135,420 120,092 111,258 103,115 99,266 91,814 89,643 90,509 102,878 104,805 103,963 96,633
Inventory turnover 1.17 1.13 1.16 1.23 1.32 1.53 1.59 1.79 2.10 2.55 2.90 3.25 3.45 3.70 3.53 3.10 2.38 2.14 2.10 2.24

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $194,222K ÷ $165,612K
= 1.17

The inventory turnover ratio for Power Integrations Inc has been fluctuating over the past few years. It has shown a decreasing trend from a high of 3.70 in September 30, 2021, to a low of 1.13 in September 30, 2024. This indicates that the company is taking longer to sell its inventory, which could potentially lead to storage costs and obsolescence risks. A lower inventory turnover ratio may also suggest inefficiencies in inventory management or declining demand for the company's products. Power Integrations Inc may need to reassess its inventory management strategies to improve its turnover ratio and optimize its working capital.