Power Integrations Inc (POWI)
Working capital 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 current assets | US$ in thousands | 511,600 | 556,116 | 550,987 | 539,195 | 525,073 | 512,029 | 481,049 | 592,501 | 686,815 | 703,347 | 667,545 | 642,312 | 601,232 | 592,947 | 577,228 | 560,442 | 541,339 | 374,656 | 360,002 | 341,119 |
Total current liabilities | US$ in thousands | 48,867 | 53,421 | 64,819 | 63,062 | 58,376 | 58,859 | 70,129 | 69,234 | 72,321 | 66,062 | 68,266 | 62,527 | 62,526 | 66,251 | 64,755 | 54,470 | 50,476 | 49,652 | 55,334 | 50,921 |
Working capital turnover | 0.96 | 0.95 | 1.06 | 1.21 | 1.40 | 1.54 | 1.74 | 1.36 | 1.14 | 1.07 | 1.04 | 0.95 | 0.91 | 0.86 | 0.87 | 0.87 | 0.86 | 1.23 | 1.30 | 1.39 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $444,538K ÷ ($511,600K – $48,867K)
= 0.96
The working capital turnover ratio for Power Integrations Inc. fluctuated over the past eight quarters, ranging from 0.96 to 1.74. A decrease in the working capital turnover ratio indicates that the company is taking longer to convert its working capital into revenue-generating activities. Conversely, an increase in the ratio suggests that the company is efficiently utilizing its working capital to generate revenue.
In Q4 2023, the working capital turnover ratio was 0.96, which was slightly lower compared to the previous quarter's ratio of 0.95. This slight decrease may indicate a slightly less efficient use of working capital in generating revenue during this period.
Furthermore, the highest working capital turnover ratio was observed in Q2 2022 at 1.74, indicating that Power Integrations Inc. was effectively utilizing its working capital to generate revenue during that quarter. On the other hand, the lowest ratio of 0.96 was recorded in Q4 2023, suggesting a potential inefficiency in the management of working capital during this period.
Overall, the fluctuation in the working capital turnover ratios of Power Integrations Inc. over the analyzed period may require further investigation into the company's operational and financial management strategies to understand the factors influencing these variations.
Peer comparison
Dec 31, 2023