Power Integrations Inc (POWI)

Cash ratio

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
Cash and cash equivalents US$ in thousands 50,972 58,469 50,493 56,443 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
Short-term investments US$ in thousands 249,023 245,282 239,985 243,163 247,640 261,896 262,219 264,439 248,441 229,754 260,209 273,419 372,235 286,506 217,777 148,067 190,318 211,926 194,556 232,183
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
Cash ratio 5.42 5.98 5.78 6.05 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

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($50,972K + $249,023K) ÷ $55,317K
= 5.42

The cash ratio of Power Integrations Inc has displayed fluctuations over the periods provided. From March 31, 2020, to September 30, 2021, the ratio ranged between 6.70 and 8.31, indicating a strong ability to cover short-term liabilities with cash and cash equivalents. However, from June 30, 2022, to June 30, 2024, the ratio declined gradually, showcasing a potential decrease in the company's liquidity position. The ratio dropped to 4.67 on June 30, 2022, signifying a reduced ability to meet immediate obligations solely from cash on hand.

Subsequently, there was a slight recovery in the cash ratio towards the end of 2024, reaching 5.42 on December 31, 2024. While this improvement suggests a partial restoration of liquidity levels, it is noteworthy that the ratio remained below the levels seen in the earlier periods. Overall, the trend in Power Integrations Inc's cash ratio highlights the importance of closely monitoring liquidity management to ensure the company can efficiently meet its short-term financial obligations.