Power Integrations Inc (POWI)

Payables 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
Payables	US$ in thousands	29,789	27,091	24,831	27,361	26,390	28,553	40,531	34,694	30,088	29,521	41,402	36,175	43,721	40,390	41,898	38,172	34,712	43,623	42,871	37,156
Payables turnover		6.52	7.00	7.91	7.57	8.17	8.04	5.88	7.35	9.45	10.38	7.80	9.25	7.84	8.41	7.55	7.36	7.05	5.14	5.10	5.83

December 31, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $194,222K ÷ $29,789K
= 6.52

The payables turnover ratio for Power Integrations Inc has shown fluctuations over the past few years. The ratio measures how efficiently the company is managing its accounts payable by calculating the number of times the company pays its suppliers within a given period.

From March 31, 2020, to June 30, 2022, the payables turnover ratio consistently increased from 5.83 to a peak of 10.38 on September 30, 2022, indicating that the company was paying its suppliers more frequently during this period.

However, from December 31, 2022, to December 31, 2024, the payables turnover ratio declined from 9.45 to 6.52. This decrease suggests that Power Integrations Inc might be taking longer to pay its suppliers, which could indicate issues with liquidity or cash flow.

Overall, fluctuations in the payables turnover ratio can provide insights into the company's liquidity management and supplier relationships. Further analysis of the company's financial statements and cash flow trends would be beneficial to understand the reasons behind these changes in the payables turnover ratio.