Power Integrations Inc (POWI)
Quick 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 50,972 | 58,469 | 50,493 | 56,443 | 63,929 | 94,743 | 84,096 | 94,189 | 105,372 | 133,474 | 67,383 | 170,624 | 158,117 | 262,435 | 297,481 | 343,272 | 258,874 | 232,014 | 251,325 | 190,459 |
| Short-term investments | US$ in thousands | 249,023 | 245,282 | 239,985 | 243,163 | 247,640 | 261,896 | 262,219 | 264,439 | 248,441 | 229,754 | 260,209 | 273,419 | 372,235 | 286,506 | 217,777 | 148,067 | 190,318 | 211,926 | 194,556 | 232,183 |
| Receivables | US$ in thousands | 27,172 | 16,634 | 16,372 | 12,279 | 14,674 | 28,539 | 32,077 | 20,585 | 20,836 | 16,075 | 27,980 | 30,658 | 41,393 | 38,872 | 41,352 | 42,257 | 35,910 | 29,447 | 12,872 | 20,597 |
| 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 |
| Quick ratio | 5.91 | 6.31 | 6.11 | 6.30 | 6.68 | 7.21 | 5.84 | 6.01 | 6.42 | 6.44 | 5.07 | 6.86 | 7.91 | 8.90 | 8.15 | 8.53 | 7.76 | 7.15 | 7.08 | 8.14 |
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 shows a fluctuating trend over the years, ranging from a high of 8.90 in September 2021 to a low of 5.07 in June 2022. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A ratio above 1 indicates that the company has enough liquid assets to cover its current liabilities, and higher ratios are generally seen as favorable.
The company's quick ratio generally stayed above 7 from March 2020 to December 2021, indicating a strong ability to meet short-term obligations. However, there was a noticeable decrease in the quick ratio in the following quarters, with a dip to 5.07 in June 2022. This decline could suggest potential liquidity challenges or changes in the company's asset composition.
Subsequently, the quick ratio improved slightly but remained below the earlier levels, with some fluctuations between 5.84 and 7.21 in the following quarters. Overall, while the company generally maintains a quick ratio above 1, indicating a healthy liquidity position, the downward trend from 2022 to 2024 may warrant further monitoring to ensure the company can continue to meet its short-term obligations effectively.
Peer comparison
Dec 31, 2024