Power Integrations Inc (POWI)

Net profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	55,735	170,851	164,413	71,176	193,468
Revenue	US$ in thousands	444,538	651,138	703,277	488,318	420,669
Net profit margin		12.54%	26.24%	23.38%	14.58%	45.99%

December 31, 2023 calculation

Net profit margin = Net income ÷ Revenue
= $55,735K ÷ $444,538K
= 12.54%

The net profit margin of Power Integrations Inc. has exhibited fluctuations over the past five years. In 2019, the company reported the highest net profit margin of 45.99%, indicating that a significant portion of its revenue translated into profits. Subsequently, the net profit margin decreased in 2020 to 14.58%, likely due to various operational or economic factors impacting profitability.

In 2021, there was a noticeable improvement in the net profit margin to 23.38%, suggesting better cost management or revenue growth strategies implemented by the company. This positive trend continued in 2022, with the net profit margin further increasing to 26.24%, indicating improved efficiency in generating profits relative to revenue.

However, in 2023, the net profit margin saw a decline to 12.54%, which may signal challenges or changes in the company's financial performance during that period. It is important for stakeholders to closely monitor the company's future financial results to assess the sustainability and trajectory of its profitability.