Power Integrations Inc (POWI)

Quick 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
Cash	US$ in thousands	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	178,690	80,162	99,491	125,795
Short-term investments	US$ in thousands	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	232,398	164,649	130,275	92,901
Receivables	US$ in thousands	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	24,274	27,105	26,276	21,002
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
Quick ratio		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	8.63	5.48	4.63	4.71

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 consistency and stability over the past eight quarters, ranging from 5.27 to 7.60. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets.

The quick ratios above 1 indicate that Power Integrations Inc. has sufficient liquid assets to cover its current liabilities, suggesting a strong liquidity position. The highest quick ratio of 7.60 in Q3 2023 indicates a significant surplus of current assets over current liabilities.

Overall, the trend in Power Integrations Inc.'s quick ratio demonstrates a robust liquidity position, which can provide assurance to stakeholders regarding the company's ability to meet its short-term financial obligations effectively.