Power Integrations Inc (POWI)

Total asset 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
Total assets	US$ in thousands	828,826	819,868	840,096	1,014,490	903,339
Total asset turnover		0.51	0.54	0.78	0.69	0.54

December 31, 2024 calculation

Total asset turnover = Revenue ÷ Total assets
= $418,973K ÷ $828,826K
= 0.51

Based on the data provided, we observe fluctuations in Power Integrations Inc's total asset turnover over the past five years. The total asset turnover ratio indicates how efficiently the company utilizes its assets to generate sales.

In December 2020, the total asset turnover was 0.54, indicating that for every dollar of assets, the company generated $0.54 in revenue. By December 2021, the ratio improved to 0.69, suggesting an increase in efficiency in asset utilization to generate sales.

Continuing the positive trend, by the end of December 2022, the total asset turnover further improved to 0.78, indicating that the company was generating more revenue for each dollar of assets invested.

However, the trend reversed in the following years. By December 2023, the total asset turnover decreased to 0.54, indicating a decline in efficiency in asset utilization for generating sales.

In December 2024, the total asset turnover ratio dropped further to 0.51, suggesting that the company faced challenges in efficiently utilizing its assets to generate revenue during that period.

Overall, the fluctuation in Power Integrations Inc's total asset turnover highlights the importance of closely monitoring asset efficiency and sales generation to ensure sustainable business performance.