Power Integrations Inc (POWI)

Activity ratios

Short-term

Turnover ratios

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
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
Receivables turnover 15.42 24.24 25.22 35.01 30.29 16.81 16.04 27.95 31.25 43.49 25.57 23.21 16.99 17.53 15.13 13.07 13.60 15.35 34.58 21.42
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
Working capital turnover 0.91 0.88 0.92 0.95 0.96 0.95 1.06 1.21 1.40 1.54 1.74 1.36 1.14 1.07 1.04 0.95 0.91 0.86 0.87 0.87

Power Integrations Inc's Inventory turnover ratio has shown a decreasing trend from 2.24 in March 2020 to 1.17 in December 2024. This indicates that the company's inventory is being sold less frequently over time. The Receivables turnover ratio fluctuates over the period but generally shows a declining trend, indicating that the company is taking longer to collect payments from its customers. The Payables turnover ratio has shown some fluctuations but has remained relatively stable, suggesting that the company is managing its payable effectively.

In terms of the Working Capital turnover ratio, there is an increasing trend from 0.87 in March 2020 to 0.91 in December 2024. This suggests that the company is generating more revenue per dollar of working capital over the period. Overall, it is important for Power Integrations Inc to closely monitor these activity ratios to ensure efficient management of its assets and liabilities.

Average number of days

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
Days of inventory on hand (DOH) days 311.23 322.91 315.66 295.78 276.25 238.75 229.33 203.81 173.90 143.11 125.67 112.42 105.74 98.61 103.42 117.62 153.44 170.57 173.48 162.74
Days of sales outstanding (DSO) days 23.67 15.06 14.47 10.42 12.05 21.71 22.76 13.06 11.68 8.39 14.27 15.72 21.48 20.82 24.12 27.92 26.84 23.77 10.56 17.04
Number of days of payables days 55.98 52.17 46.14 48.21 44.68 45.37 62.07 49.64 38.64 35.18 46.77 39.44 46.57 43.38 48.34 49.61 51.77 71.00 71.54 62.57

Power Integrations Inc's Days of Inventory on Hand (DOH) has fluctuated over the years, indicating changes in the company's inventory management efficiency. The company started with 162.74 days in March 2020 and experienced a decrease in DOH until September 2021, indicating an improvement in managing inventory levels. However, from December 2021 to December 2024, there was a significant increase in DOH, reaching 311.23 days. This suggests a potential issue with inventory management or changes in the company's business operations.

In terms of Days of Sales Outstanding (DSO), Power Integrations Inc's performance has shown variability. The DSO decreased from 17.04 days in March 2020 to 8.39 days in September 2022, indicating an improvement in accounts receivable management. However, the DSO increased in the later periods, reaching 23.67 days in December 2024. This increase could imply challenges in collecting revenues from customers promptly, potentially affecting cash flow.

Regarding the Number of Days of Payables, the company's payment cycle has also seen fluctuations. The days of payables ranged from 39.44 days in March 2022 to 71.54 days in June 2020. This variability could suggest changes in the company's payment policies or relationships with suppliers. Overall, these activity ratios reflect Power Integrations Inc's effectiveness in managing its working capital and maintaining efficient operations.

Long-term

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
Fixed asset turnover 2.80 2.63 2.68 2.69 2.71 2.88 3.06 3.32 3.69 3.86 3.88 3.95 3.91 4.04 3.74 3.27 2.94 3.06 3.21 3.57
Total asset turnover 0.51 0.49 0.51 0.53 0.54 0.55 0.60 0.68 0.78 0.83 0.88 0.77 0.69 0.68 0.65 0.58 0.54 0.52 0.52 0.53

The fixed asset turnover ratio for Power Integrations Inc has shown a declining trend from March 31, 2020, to December 31, 2024, decreasing from 3.57 to 2.80. This indicates that the company's ability to generate sales from its fixed assets has been decreasing over the period.

On the other hand, the total asset turnover ratio has shown fluctuations, increasing from 0.53 on March 31, 2020, to a peak of 0.88 on June 30, 2022, before dropping back to 0.51 on December 31, 2024. This ratio reflects how effectively the company is utilizing all its assets to generate revenue, and the fluctuations indicate varying efficiency levels in asset utilization over time.

Overall, the fixed asset turnover ratio declining trend suggests potential inefficiencies in utilizing fixed assets, while the fluctuations in the total asset turnover ratio may indicate changing efficiency in utilizing all assets to generate sales. These trends imply the need for Power Integrations Inc to closely monitor and possibly optimize its asset utilization strategies to enhance its operational efficiency and profitability.