Power Integrations Inc (POWI)

Current 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
Total current assets US$ in thousands 511,600 556,116 550,987 539,195 525,073 512,029 481,049 592,501 686,815 703,347 667,545 642,312 601,232 592,947 577,228 560,442 541,339 374,656 360,002 341,119
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
Current ratio 10.47 10.41 8.50 8.55 8.99 8.70 6.86 8.56 9.50 10.65 9.78 10.27 9.62 8.95 8.91 10.29 10.72 7.55 6.51 6.70

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 generally positive trend over the past eight quarters, with the ratio consistently above 6. This indicates that the company has significantly more current assets than current liabilities, which is a positive sign of liquidity and the ability to meet short-term obligations.

Of particular note, the current ratio has steadily increased from 8.99 in Q4 2022 to 10.47 in Q4 2023, reaching its highest level within the period under review. This suggests that the company has been effectively managing its current assets and liabilities, resulting in a stronger liquidity position.

While there was a slight decrease in the current ratio in Q2 2023 and Q3 2023, the ratios remained above 8, indicating that Power Integrations Inc. continued to maintain a healthy level of current assets relative to current liabilities during those quarters.

Overall, based on the current ratio trend, Power Integrations Inc. appears to be in a solid financial position in terms of its short-term liquidity, which bodes well for its ability to cover its immediate financial obligations.


Peer comparison

Dec 31, 2023