Power Integrations Inc (POWI)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 50,972 | 63,929 | 105,372 | 158,117 | 258,874 |
| Short-term investments | US$ in thousands | 249,023 | 247,640 | 248,441 | 372,235 | 190,318 |
| Receivables | US$ in thousands | 27,172 | 14,674 | 20,836 | 41,393 | 35,910 |
| Total current liabilities | US$ in thousands | 55,317 | 48,867 | 58,376 | 72,321 | 62,526 |
| Quick ratio | 5.91 | 6.68 | 6.42 | 7.91 | 7.76 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($50,972K
+ $249,023K
+ $27,172K)
÷ $55,317K
= 5.91
The quick ratio of Power Integrations Inc has shown a consistent and healthy trend over the past five years. As of December 31, 2020, the quick ratio was at a strong 7.76, indicating the company's ability to cover its short-term liabilities with its most liquid assets. This ratio improved slightly to 7.91 by December 31, 2021, demonstrating the company's continued strong liquidity position.
Although there was a slight decrease in the quick ratio to 6.42 by December 31, 2022, and further to 6.68 by December 31, 2023, the ratio remained well above the industry average, indicating that Power Integrations Inc still had a robust ability to meet its short-term obligations using its quick assets.
By December 31, 2024, the quick ratio declined to 5.91, potentially signaling a slight decrease in liquidity compared to the previous years. However, the ratio remains at a level that suggests the company can still comfortably cover its short-term liabilities with its quick assets.
Overall, the trend of Power Integrations Inc's quick ratio indicates a consistently strong liquidity position, providing assurance that the company has sufficient liquid assets to meet its short-term financial obligations in a timely manner.
Peer comparison
Dec 31, 2024