Power Integrations Inc (POWI)

Working capital 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 current assets	US$ in thousands	514,039	511,600	525,073	686,815	601,232
Total current liabilities	US$ in thousands	55,317	48,867	58,376	72,321	62,526
Working capital turnover		0.91	0.96	1.40	1.14	0.91

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $418,973K ÷ ($514,039K – $55,317K)
= 0.91

The working capital turnover of Power Integrations Inc has shown some fluctuations over the past five years. In 2020, the working capital turnover was 0.91, indicating that the company generated $0.91 in revenue for every dollar of working capital invested during that year.

By the end of 2021, the working capital turnover improved to 1.14, signaling that the company was able to generate $1.14 in revenue for every dollar of working capital. This suggests a more efficient utilization of working capital in generating sales.

The trend continued to show improvement in 2022, with a working capital turnover of 1.40. This indicates that the company significantly enhanced its efficiency in utilizing working capital to generate revenue during that year.

However, there was a slight decline in the working capital turnover in 2023, dropping to 0.96. This could suggest a potential decrease in efficiency in converting working capital into sales revenue for the company during that period.

The working capital turnover remained consistent in 2024, staying at 0.91. This may indicate a need for closer examination of the company's working capital management practices to identify areas for improvement and potential strategies to enhance efficiency in the future.