Power Integrations Inc (POWI)

Gross profit margin

		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
Gross profit (ttm)	US$ in thousands	228,956	250,102	276,192	320,189	366,907	392,729	392,433	376,903	360,639	341,468	309,298	271,521	243,590	227,810	226,372	224,408	213,402	203,182	202,056	206,718
Revenue (ttm)	US$ in thousands	444,538	479,801	514,523	575,286	651,138	699,022	715,565	711,689	703,277	681,316	625,669	552,391	488,318	452,082	445,112	441,145	420,669	399,519	395,445	402,062
Gross profit margin		51.50%	52.13%	53.68%	55.66%	56.35%	56.18%	54.84%	52.96%	51.28%	50.12%	49.43%	49.15%	49.88%	50.39%	50.86%	50.87%	50.73%	50.86%	51.10%	51.41%

December 31, 2023 calculation

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

The gross profit margin of Power Integrations Inc. has exhibited a downward trend over the past eight quarters. The margin has decreased from 56.35% in Q4 2022 to 51.50% in Q4 2023. This indicates a declining profitability in terms of generating revenue after accounting for the cost of goods sold. While the company's gross profit margin fluctuated slightly quarter to quarter, the overall trend suggests a potential strain on the company's ability to maintain strong margins. It would be advisable for stakeholders to monitor this trend closely and investigate the factors influencing the decline to ensure sustainable profitability in the future.