Power Integrations Inc (POWI)
Cash ratio
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 | ||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Cash and cash equivalents | US$ in thousands | 63,929 | 94,743 | 84,096 | 94,189 | 105,372 | 133,474 | 67,383 | 170,624 | 158,117 | 262,435 | 297,481 | 343,272 | 258,874 | 232,014 | 251,325 | 190,459 | 178,690 | 80,162 | 99,491 | 125,795 |
Short-term investments | US$ in thousands | 247,640 | 261,896 | 262,219 | 264,439 | 248,441 | 229,754 | 260,209 | 273,419 | 372,235 | 286,506 | 217,777 | 148,067 | 190,318 | 211,926 | 194,556 | 232,183 | 232,398 | 164,649 | 130,275 | 92,901 |
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 |
Cash ratio | 6.38 | 6.68 | 5.34 | 5.69 | 6.06 | 6.17 | 4.67 | 6.41 | 7.33 | 8.31 | 7.55 | 7.86 | 7.18 | 6.70 | 6.89 | 7.76 | 8.14 | 4.93 | 4.15 | 4.29 |
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 exhibited fluctuations over the past eight quarters, with values ranging from 4.87 to 7.06. In the most recent quarter, Q4 2023, the cash ratio stood at 6.83, indicating that the company had $6.83 in cash and cash equivalents for every $1 of current liabilities. This level of liquidity suggests that Power Integrations Inc. has a strong ability to cover its short-term obligations with its available cash resources.
The trend of the cash ratio over the past quarters shows some variability, with occasional fluctuations in the company's liquidity position. However, overall, the cash ratio has remained relatively high, indicating that Power Integrations Inc. has maintained a healthy cash balance in relation to its current liabilities.
It is important to note that while a high cash ratio reflects good liquidity, excessively high levels of cash may also indicate an inefficient use of resources. Therefore, Power Integrations Inc. should continue to monitor and manage its cash position effectively to strike a balance between liquidity and optimal resource allocation.
Peer comparison
Dec 31, 2023