Power Integrations Inc (POWI)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 53.64% | 51.50% | 56.35% | 51.28% | 49.88% |
| Operating profit margin | 4.28% | 7.89% | 27.71% | 24.89% | 14.43% |
| Pretax margin | 7.34% | 10.33% | 28.17% | 25.04% | 15.41% |
| Net profit margin | 7.69% | 12.54% | 26.24% | 23.38% | 14.58% |
Power Integrations Inc has shown a consistent improvement in its gross profit margin over the years, with an increase from 49.88% in 2020 to 53.64% in 2024. This indicates the company's ability to efficiently manage production costs and generate higher revenues relative to the cost of goods sold.
In terms of operating profit margin, the company exhibited significant variability, with a substantial increase from 14.43% in 2020 to 27.71% in 2022, followed by a decline to 4.28% in 2024. This fluctuation suggests potential challenges in controlling operating expenses or changes in the revenue mix.
Similarly, the pretax margin showed a similar trend of improvement from 15.41% in 2020 to 28.17% in 2022 before dropping to 7.34% in 2024. This pattern indicates fluctuations in pre-tax profitability, influenced by various factors such as interest expenses, non-operating income, and taxes.
Lastly, the net profit margin of Power Integrations Inc increased from 14.58% in 2020 to 26.24% in 2022, before declining to 7.69% in 2024. This trend signifies the company's ability to translate its revenue into profit after considering all operating and non-operating expenses.
Overall, while Power Integrations Inc has shown improvements in its profitability margins over the years, the fluctuations in operating profit, pretax, and net profit margins in recent years may indicate the need for further analysis to understand the underlying factors impacting the company's overall profitability.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 2.16% | 4.28% | 21.48% | 17.26% | 7.80% |
| Return on assets (ROA) | 3.89% | 6.80% | 20.34% | 16.21% | 7.88% |
| Return on total capital | 2.39% | 4.66% | 23.89% | 19.19% | 8.70% |
| Return on equity (ROE) | 4.30% | 7.41% | 22.62% | 18.03% | 8.78% |
Based on the provided data, Power Integrations Inc's profitability ratios display fluctuating trends over the years:
1. Operating return on assets (Operating ROA) has shown an upward trend from 7.80% in December 2020 to 21.48% in December 2022, indicating improved operational efficiency. However, there was a decline in December 2023 and December 2024 to 4.28% and 2.16%, respectively.
2. Return on assets (ROA) has demonstrated a similar pattern, increasing from 7.88% in December 2020 to 20.34% in December 2022 before dropping to 3.89% in December 2024.
3. Return on total capital exhibited a consistent growth from 8.70% in December 2020 to 23.89% in December 2022, signifying effective utilization of both debt and equity capital. However, there was a significant decrease in December 2023 and December 2024 to 4.66% and 2.39%, respectively.
4. Return on equity (ROE) also followed a similar trajectory, rising from 8.78% in December 2020 to 22.62% in December 2022, reflecting enhanced profitability for the shareholders. Nonetheless, there was a decline in December 2023 and December 2024 to 7.41% and 4.30%, respectively.
Overall, the analysis of Power Integrations Inc's profitability ratios suggests varying levels of performance in generating profits and managing assets efficiently over the years.