Power Integrations Inc (POWI)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 514,039 | 511,600 | 525,073 | 686,815 | 601,232 |
| Total current liabilities | US$ in thousands | 55,317 | 48,867 | 58,376 | 72,321 | 62,526 |
| Current ratio | 9.29 | 10.47 | 8.99 | 9.50 | 9.62 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $514,039K ÷ $55,317K
= 9.29
The current ratio of Power Integrations Inc has shown stability and strength over the past five years. As of December 31, 2020, the current ratio was 9.62, indicating that the company had more than sufficient current assets to cover its current liabilities. Although the ratio slightly decreased to 9.50 by the end of 2021 and further to 8.99 by the end of 2022, it remained at a healthy level.
However, there was an improvement in the current ratio in 2023, reaching 10.47, which suggests an increase in short-term liquidity and the company's ability to meet its short-term obligations comfortably. In 2024, the current ratio decreased slightly to 9.29 but still indicates a strong position in terms of current assets relative to current liabilities.
Overall, Power Integrations Inc has maintained a robust current ratio above 1 over the analyzed period, signaling a solid financial position and liquidity to meet its short-term obligations effectively.
Peer comparison
Dec 31, 2024