Power Integrations Inc (POWI)

Payables turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	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	207,267	196,337	193,389	195,344
Payables	US$ in thousands	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	27,433	30,542	35,985	33,432
Payables turnover		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	7.56	6.43	5.37	5.84

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $215,582K ÷ $26,390K
= 8.17

The payables turnover ratio of Power Integrations Inc. has been fluctuating over the past 8 quarters. The ratio indicates how efficiently the company is managing its accounts payable by paying off its suppliers.

In Q4 2023, the payables turnover ratio was 8.17, slightly higher than the previous quarter. This suggests that the company is paying off its suppliers at a faster rate compared to Q3. However, the ratio is lower than the levels seen in Q2 and Q1 2022, indicating a potential slowdown in payables turnover efficiency.

Overall, Power Integrations Inc. has shown variations in its payables turnover ratio, reflecting changes in its payment practices and relationship with suppliers. Further analysis and comparisons with industry benchmarks would provide a more comprehensive understanding of the company's performance in managing its payables.