Power Integrations Inc (POWI)

Current 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
Total current assets	US$ in thousands	514,039	507,886	499,836	502,464	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
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
Current ratio		9.29	10.01	9.95	10.14	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

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 exhibited fluctuations over the period from March 31, 2020, to December 31, 2024. The current ratio, which measures the company's ability to meet its short-term obligations with its current assets, started at a relatively high level of 10.29 on March 31, 2020.

Subsequently, the current ratio experienced some variability, dipping to a low of 6.86 on June 30, 2022, and then recovering to 10.47 on December 31, 2023, before stabilizing around the range of 9 to 10 in the latter half of 2023 and into 2024.

The current ratios above 1 suggest that Power Integrations Inc had more than enough current assets to cover its short-term liabilities during these periods. However, the decreasing trend observed from June 2023 indicates a potential need to closely monitor the company's liquidity position in the short term.

Overall, while the company's current ratio has shown some variability, it has generally remained at healthy levels throughout the period under consideration, suggesting a satisfactory ability to meet its short-term financial obligations.