Power Integrations Inc (POWI)

Gross profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Gross profit	US$ in thousands	228,956	366,907	360,639	243,590	213,402
Revenue	US$ in thousands	444,538	651,138	703,277	488,318	420,669
Gross profit margin		51.50%	56.35%	51.28%	49.88%	50.73%

December 31, 2023 calculation

Gross profit margin = Gross profit ÷ Revenue
= $228,956K ÷ $444,538K
= 51.50%

The gross profit margin of Power Integrations Inc. has exhibited some fluctuation over the past five years. Starting at 50.73% in 2019, the margin increased to 49.88% in 2020 before rising to 51.28% in 2021. However, there was a significant jump to 56.35% in 2022, indicating improved efficiency in generating revenues after cost of goods sold. In 2023, the margin declined slightly to 51.50%, suggesting a potential increase in production costs or a shift in pricing strategies. Overall, Power Integrations Inc. has generally maintained a healthy gross profit margin above 50% during this period, reflecting a strong ability to generate profit from its core operations.