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.