Power Integrations Inc (POWI)

Operating profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Operating income	US$ in thousands	17,929	35,059	180,412	175,058	70,487
Revenue	US$ in thousands	418,973	444,538	651,138	703,277	488,318
Operating profit margin		4.28%	7.89%	27.71%	24.89%	14.43%

December 31, 2024 calculation

Operating profit margin = Operating income ÷ Revenue
= $17,929K ÷ $418,973K
= 4.28%

Based on the data provided, Power Integrations Inc's operating profit margin has shown fluctuations over the years. The operating profit margin increased significantly from 14.43% as of December 31, 2020, to 27.71% as of December 31, 2022, indicating improved operational efficiency and profitability during this period.

However, there was a notable decline in the operating profit margin to 7.89% as of December 31, 2023, and further decreased to 4.28% as of December 31, 2024. These declines suggest challenges or inefficiencies in managing operating expenses or generating sufficient revenues relative to costs in those particular years.

Overall, Power Integrations Inc's operating profit margin has shown both positive and negative trends, reflecting the company's varying financial performance and its ability to effectively control costs and optimize operational productivity. Continued monitoring and strategic adjustments may be necessary to sustain and enhance the operating profit margin in the future.