Power Integrations Inc (POWI)

Total asset 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
Total assets	US$ in thousands	819,868	865,490	859,457	851,405	840,096	837,963	809,004	919,195	1,014,490	1,004,990	967,849	944,719	903,339	876,068	853,777	827,439	803,896	636,410	620,389	600,505
Total asset turnover		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	0.52	0.63	0.64	0.67

December 31, 2023 calculation

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

Total asset turnover measures how efficiently a company utilizes its assets to generate revenue. A higher total asset turnover indicates that a company is more efficient in generating sales with a lower level of assets.

Power Integrations Inc.'s total asset turnover has been fluctuating over the past eight quarters, ranging from 0.54 to 0.88. The trend shows a decline over this period, starting at 0.88 in Q2 2022 and gradually decreasing to 0.54 in Q4 2023.

The decreasing trend in total asset turnover may signal inefficiencies in asset utilization or a decrease in sales relative to total assets. It is essential for the company to effectively manage its assets to improve this ratio and enhance overall operational efficiency.

Further analysis and comparison with industry peers or historical data can provide deeper insights into the company's asset management strategies and overall financial performance.