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