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