Power Integrations Inc (POWI)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 63,929 | 105,372 | 158,117 | 258,874 | 178,690 |
| Short-term investments | US$ in thousands | 247,640 | 248,441 | 372,235 | 190,318 | 232,398 |
| Receivables | US$ in thousands | 14,674 | 20,836 | 41,393 | 35,910 | 24,274 |
| Total current liabilities | US$ in thousands | 48,867 | 58,376 | 72,321 | 62,526 | 50,476 |
| Quick ratio | 6.68 | 6.42 | 7.91 | 7.76 | 8.63 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($63,929K
+ $247,640K
+ $14,674K)
÷ $48,867K
= 6.68
The quick ratio of Power Integrations Inc. has shown a varying trend over the past five years. The quick ratio provides insight into the company's ability to meet its short-term liabilities with its most liquid assets. A quick ratio greater than 1 indicates that the company can cover its current liabilities with its quick assets.
Power Integrations Inc.'s quick ratio has been consistently above 1 over the past five years, indicating a healthy liquidity position. The company's quick ratio ranged from 6.67 to 8.93 during this period, with the highest ratio recorded in 2019.
The upward trend in the quick ratio from 2019 to 2021 suggests an improvement in the company's ability to cover its short-term obligations with quick assets. However, the slight decrease in the quick ratio in 2022 and 2023 may indicate a potential decrease in liquidity, although the ratios remain at a healthy level.
Overall, Power Integrations Inc. has maintained a strong liquidity position based on its quick ratio analysis, indicating its ability to meet short-term financial obligations effectively.
Peer comparison
Dec 31, 2023