Power Integrations Inc (POWI)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	63,929	105,372	158,117	258,874	178,690
Short-term investments	US$ in thousands	247,640	248,441	372,235	190,318	232,398
Total current liabilities	US$ in thousands	48,867	58,376	72,321	62,526	50,476
Cash ratio		6.38	6.06	7.33	7.18	8.14

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($63,929K + $247,640K) ÷ $48,867K
= 6.38

The cash ratio of Power Integrations Inc. has shown a fluctuating trend over the past five years. The ratio has ranged from a low of 6.32 in December 2022 to a high of 8.43 in December 2019. This indicates the company's ability to cover its current liabilities with its cash and cash equivalents. Overall, the company has maintained a strong cash position relative to its current liabilities, although the fluctuations in the ratio suggest variations in the liquidity of the company over the years. It is essential for stakeholders to closely monitor this ratio to assess the company's short-term liquidity and ability to meet its financial obligations.