Power Integrations Inc (POWI)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 511,600 | 525,073 | 686,815 | 601,232 | 541,339 |
| Total current liabilities | US$ in thousands | 48,867 | 58,376 | 72,321 | 62,526 | 50,476 |
| Current ratio | 10.47 | 8.99 | 9.50 | 9.62 | 10.72 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $511,600K ÷ $48,867K
= 10.47
The current ratio of Power Integrations Inc. has shown a fluctuating trend over the past five years, ranging from a low of 8.99 in 2022 to a high of 10.72 in 2019. The current ratio measures the company's ability to meet its short-term obligations with its current assets. A higher current ratio indicates a stronger liquidity position, as the company has more current assets to cover its current liabilities.
Power Integrations Inc. has shown a generally strong current ratio over the years, with values consistently above 9. This suggests that the company has maintained a healthy liquidity position and is capable of meeting its short-term obligations comfortably. The current ratio of 10.47 in 2023 indicates that the company has $10.47 in current assets for every $1 of current liabilities.
Overall, Power Integrations Inc. appears to have a solid financial position in terms of liquidity, as evidenced by its relatively high and stable current ratio over the years. However, it is important to consider other financial metrics and factors in conjunction with the current ratio to gain a comprehensive understanding of the company's financial health.
Peer comparison
Dec 31, 2023