Power Integrations Inc (POWI)

Receivables turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	418,973	444,538	651,138	703,277	488,318
Receivables	US$ in thousands	27,172	14,674	20,836	41,393	35,910
Receivables turnover		15.42	30.29	31.25	16.99	13.60

December 31, 2024 calculation

Receivables turnover = Revenue ÷ Receivables
= $418,973K ÷ $27,172K
= 15.42

The receivables turnover ratio for Power Integrations Inc has shown variations over the past five years. In December 2020, the ratio was 13.60, indicating that the company collected its accounts receivable approximately 13.60 times during that year.

There was a notable increase in efficiency in managing receivables in December 2021, with the ratio improving to 16.99. This suggests that the company was more effective in collecting payments from its customers.

The trend continued to improve significantly in December 2022, reaching 31.25, signaling a substantial enhancement in the speed at which the company was able to convert receivables into cash.

In December 2023, although there was a slight decrease in the receivables turnover ratio to 30.29, the company continued to demonstrate strong collections performance.

However, the efficiency in managing receivables declined in December 2024, as the ratio dropped to 15.42. This reduction suggests that the company may have taken longer to collect payments from its customers compared to the previous year.

Overall, the trend in the receivables turnover ratio for Power Integrations Inc reflects fluctuations in the company's ability to efficiently collect outstanding receivables over the past five years.