Power Integrations Inc (POWI)
Net profit margin
Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
---|---|---|---|---|---|---|
Net income | US$ in thousands | 32,234 | 55,735 | 170,851 | 164,413 | 71,176 |
Revenue | US$ in thousands | 418,973 | 444,538 | 651,138 | 703,277 | 488,318 |
Net profit margin | 7.69% | 12.54% | 26.24% | 23.38% | 14.58% |
December 31, 2024 calculation
Net profit margin = Net income ÷ Revenue
= $32,234K ÷ $418,973K
= 7.69%
The net profit margin of Power Integrations Inc has shown varying trends over the years. In December 31, 2020, the net profit margin stood at 14.58%, indicating that the company retained about 14.58% of its total revenue as profit.
By December 31, 2021, the net profit margin had improved significantly to 23.38%, signaling a strong performance in generating profits relative to its revenue. This increase suggests effective cost management or higher revenue generation during the period.
In December 31, 2022, the net profit margin continued to rise to 26.24%, showcasing the company's ability to further enhance its profitability. This improvement may be attributed to operational efficiency, increased sales, or other strategic initiatives.
However, by December 31, 2023, the net profit margin dropped to 12.54%, indicating a decrease in profitability compared to the previous year. This decline could be due to various factors such as rising costs, economic challenges, or changes in industry dynamics.
The trend continued in December 31, 2024, with the net profit margin declining further to 7.69%. This significant decrease suggests a challenging period for Power Integrations Inc in maintaining profitability, potentially facing increased expenses or declining revenue.
Overall, analyzing the net profit margin of Power Integrations Inc over the specified years indicates fluctuations in profitability, highlighting the company's performance in generating profits relative to its total revenue. It is essential for the company to closely monitor and address the factors impacting its net profit margin to sustain long-term financial health and success.
Peer comparison
Dec 31, 2024