Power Integrations Inc (POWI)

Net 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
Net income (ttm)	US$ in thousands	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	193,468	57,913	58,481	63,017
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
Net profit margin		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%	45.99%	14.50%	14.79%	15.67%

December 31, 2023 calculation

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

The net profit margin of Power Integrations Inc. has shown a decreasing trend over the past eight quarters, declining from 26.24% in Q4 2022 to 12.54% in Q4 2023. This indicates that the company's ability to convert revenue into profit has been weakening over time. The highest net profit margin achieved was 27.00% in Q3 2022, while the lowest was recorded in the most recent quarter, Q4 2023.

The downward trajectory of the net profit margin may raise concerns about the company's cost management efficiency, pricing strategy, or revenue generation capabilities. Investors and stakeholders should closely monitor future financial performance to assess if this trend persists or if management takes measures to improve profitability.