Power Integrations Inc (POWI)
Payables 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 |
| Payables | US$ in thousands | 26,390 | 30,088 | 43,721 | 34,712 | 27,433 |
| Payables turnover | 8.17 | 9.45 | 7.84 | 7.05 | 7.56 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $215,582K ÷ $26,390K
= 8.17
The payables turnover ratio for Power Integrations Inc. has shown fluctuations over the past five years. In 2023, the company's payables turnover ratio was 8.17, indicating that the company paid off its accounts payable approximately 8.17 times during the year. This was a decrease from 2022 when the ratio was 9.45.
A higher payables turnover ratio generally indicates more frequent and efficient management of accounts payable by the company. The decrease in the ratio from 2022 to 2023 may suggest that Power Integrations Inc. took longer to pay off its suppliers or managed its payables less efficiently in 2023 compared to the previous year.
Overall, the company's payables turnover has shown relative stability over the past five years, ranging from 7.05 to 9.45. Further analysis would be required to understand the specific factors driving these fluctuations and whether they align with the company's overall financial performance and strategy.
Peer comparison
Dec 31, 2023