Power Integrations Inc (POWI)

Receivables 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
Revenue (ttm)	US$ in thousands	444,538	479,801	514,523	575,286	651,138	699,022	715,565	711,689	703,277	681,316	625,669	552,391	488,318	452,082	445,112	441,145	420,669	399,519	395,445	402,062
Receivables	US$ in thousands	14,674	28,539	32,077	20,585	20,836	16,075	27,980	30,658	41,393	38,872	41,352	42,257	35,910	29,447	12,872	20,597	24,274	27,105	26,276	21,002
Receivables turnover		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	17.33	14.74	15.05	19.14

December 31, 2023 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $444,538K ÷ $14,674K
= 30.29

The receivables turnover for Power Integrations Inc. has varied over the past eight quarters, ranging from a low of 16.04 in Q2 2023 to a high of 43.49 in Q3 2022. A higher receivables turnover ratio indicates that the company is able to collect its accounts receivable more efficiently, while a lower ratio suggests a longer collection period.

The fluctuation in receivables turnover may highlight changes in the company's credit policies, customer payment behavior, or the timing of sales. A significant decrease in the turnover rate could indicate potential issues with collecting receivables promptly, while a sharp increase may suggest more effective credit management.

It is essential for Power Integrations Inc. to monitor its receivables turnover consistently to ensure effective accounts receivable management and maintain healthy cash flow. Analyzing trends in the receivables turnover ratio can provide valuable insights into the company's financial performance and underlying operational efficiency.