Power Integrations Inc (POWI)

Working capital turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Revenue (ttm)	US$ in thousands	418,973	403,230	412,904	429,929	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
Total current assets	US$ in thousands	514,039	507,886	499,836	502,464	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
Total current liabilities	US$ in thousands	55,317	50,758	50,224	49,535	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
Working capital turnover		0.91	0.88	0.92	0.95	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

December 31, 2024 calculation

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

The working capital turnover ratio for Power Integrations Inc has shown fluctuating trends over the specified periods. The ratio was relatively stable around 0.87 to 0.91 from March 31, 2020, to December 31, 2021. Subsequently, there was a notable improvement in the ratio, reaching 1.36 by March 31, 2022, and peaking at 1.74 by June 30, 2022.

However, there was a decline in the working capital turnover ratio in the following quarters, dropping to 0.88 by September 30, 2024. Despite some fluctuations, the ratio has generally remained within a range of 0.95 to 1.74, indicating the company's ability to efficiently utilize its working capital to generate revenue.

Overall, the upward trend in the working capital turnover ratio from 2020 to mid-2022 indicates improved efficiency in the management of working capital. However, the subsequent decrease suggests a potential slowdown in the utilization of working capital in generating sales by the company. It would be important to monitor this ratio in the future to assess the company's working capital management and operational efficiency.