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