Power Integrations Inc (POWI)

Net profit margin

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Net income (ttm) US$ in thousands 32,234 37,365 42,870 52,814 55,735 64,279 90,447 131,478 170,851 188,736 184,806 170,863 164,413 150,991 123,777 95,088 71,176 202,189 204,468 202,121
Revenue (ttm) US$ in thousands 418,973 403,230 412,904 429,929 444,538 479,801 514,523 575,286 651,138 699,022 715,565 711,689 703,277 681,316 625,669 552,391 488,318 452,082 445,112 441,145
Net profit margin 7.69% 9.27% 10.38% 12.28% 12.54% 13.40% 17.58% 22.85% 26.24% 27.00% 25.83% 24.01% 23.38% 22.16% 19.78% 17.21% 14.58% 44.72% 45.94% 45.82%

December 31, 2024 calculation

Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $32,234K ÷ $418,973K
= 7.69%

Net profit margin is a key profitability ratio that indicates the percentage of revenue that translates into profit after all expenses have been deducted. In the case of Power Integrations Inc, the net profit margin has shown some fluctuations over the past few years.

From March 31, 2020, to June 30, 2022, the net profit margin displayed a consistent upward trend, reaching a peak of 27.00% on September 30, 2022. This upward trajectory signals an improvement in the company's efficiency in generating profits relative to its revenue during this period.

However, from December 31, 2022, onwards, the net profit margin started to decline. By December 31, 2024, the net profit margin had dropped to 7.69%, indicating a significant decrease in profitability compared to the earlier periods.

Overall, while Power Integrations Inc experienced a period of increasing profitability up to mid-2022, the declining trend in the net profit margin in the latter years suggests potential challenges in maintaining profit levels or controlling costs that impacted the company's bottom line performance.