Power Integrations Inc (POWI)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 51.50% | 56.35% | 51.28% | 49.88% | 50.73% |
| Operating profit margin | 7.89% | 27.71% | 24.89% | 14.43% | 51.59% |
| Pretax margin | 10.33% | 28.17% | 25.04% | 15.41% | 52.87% |
| Net profit margin | 12.54% | 26.24% | 23.38% | 14.58% | 45.99% |
Power Integrations Inc.'s profitability ratios exhibit some fluctuations over the past five years. The gross profit margin has ranged between 49.88% to 56.35%, with a noticeable decrease in 2020 followed by a recovery in 2021 and a slight decline in 2022 and 2023. The operating profit margin has shown significant variability, ranging from 7.89% to 27.88%, with a notable increase in 2022 followed by a decline in 2023. The pretax margin also reflects variability, ranging from 10.33% to 52.87%, with a sharp decline in 2023 after a peak in 2019. The net profit margin ranges from 12.54% to 45.99%, with a significant decrease from 2019 to 2020, followed by a recovery in 2021 and a slight decline in 2023. Overall, Power Integrations Inc.'s profitability margins have shown mixed trends over the past five years, indicating fluctuations in operational efficiency and cost management.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.28% | 21.48% | 17.26% | 7.80% | 27.00% |
| Return on assets (ROA) | 6.80% | 20.34% | 16.21% | 7.88% | 24.07% |
| Return on total capital | 4.66% | 23.89% | 19.19% | 8.70% | 29.95% |
| Return on equity (ROE) | 7.41% | 22.62% | 18.03% | 8.78% | 26.70% |
Power Integrations Inc. has shown varying levels of profitability over the past five years based on the profitability ratios analyzed.
1. Operating return on assets (Operating ROA): This ratio measures the company's operating income generated per dollar of assets. The trend shows a significant decrease in 2023 compared to the previous year, indicating potentially lower operating efficiency in utilizing assets to generate operating income.
2. Return on assets (ROA): This ratio indicates the company's overall ability to generate profits from its assets, including both operating and non-operating activities. The ROA has fluctuated over the years, with a peak in 2019 and a slight decline in 2023, suggesting a potential decrease in overall asset efficiency.
3. Return on total capital: This ratio assesses the company's ability to generate returns for all capital invested, including debt and equity. Power Integrations Inc. experienced a notable decrease in 2023 compared to the previous year, indicating a lower return on the total capital employed in the business.
4. Return on equity (ROE): ROE measures the company's ability to generate profits from the shareholders' equity. The trend in ROE has varied over the years, with a decline in 2023, suggesting a potentially lower profitability relative to shareholders' equity compared to previous years.
In conclusion, Power Integrations Inc. has shown mixed results in terms of profitability ratios over the past five years, with fluctuations in operational and overall asset efficiency, return on total capital, and return on equity. Further analysis and investigation may be required to understand the underlying factors contributing to these fluctuations.