Power Integrations Inc (POWI)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 194,222 | 215,582 | 284,231 | 342,638 | 244,728 |
| Payables | US$ in thousands | 29,789 | 26,390 | 30,088 | 43,721 | 34,712 |
| Payables turnover | 6.52 | 8.17 | 9.45 | 7.84 | 7.05 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $194,222K ÷ $29,789K
= 6.52
The payable turnover ratio for Power Integrations Inc has shown a consistent increasing trend over the past five years. Starting at 7.05 in December 31, 2020, the ratio reached its highest point of 9.45 in December 31, 2022, before slightly decreasing to 8.17 in December 31, 2023. The ratio then dropped further to 6.52 by December 31, 2024. Overall, a higher payable turnover ratio indicates that the company is taking fewer days to pay its suppliers, which can be seen as a positive sign of efficient management of payables. However, the dip in the ratio in the most recent year may warrant further investigation to understand the reasons behind it.
Peer comparison
Dec 31, 2024