Power Integrations Inc (POWI)

Total asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	444,538	651,138	703,277	488,318	420,669
Total assets	US$ in thousands	819,868	840,096	1,014,490	903,339	803,896
Total asset turnover		0.54	0.78	0.69	0.54	0.52

December 31, 2023 calculation

Total asset turnover = Revenue ÷ Total assets
= $444,538K ÷ $819,868K
= 0.54

The total asset turnover ratio for Power Integrations Inc. has fluctuated over the past five years. In 2023, the total asset turnover was 0.54, a decrease from the previous year. This indicates that the company generated $0.54 in revenue for every $1 of total assets it held.

Comparing to 2022, where the total asset turnover was 0.78, there was a decline in efficiency in utilizing its assets to generate revenue in 2023. This decrease may raise concerns about the company's operational efficiency and asset management strategies.

In 2021, the total asset turnover was 0.69, showing a moderate level of asset utilization. The ratio dropped significantly in 2020 to 0.54, but it increased in 2019 to 0.52.

Overall, the trend in total asset turnover for Power Integrations Inc. indicates variability in the company's ability to generate revenue from its total assets, suggesting the need for closer attention to asset management and operational efficiency strategies.