Power Integrations Inc (POWI)

Operating profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Operating income	US$ in thousands	35,059	180,412	175,058	70,487	217,022
Revenue	US$ in thousands	444,538	651,138	703,277	488,318	420,669
Operating profit margin		7.89%	27.71%	24.89%	14.43%	51.59%

December 31, 2023 calculation

Operating profit margin = Operating income ÷ Revenue
= $35,059K ÷ $444,538K
= 7.89%

The operating profit margin of Power Integrations Inc. has exhibited variability over the past five years. In 2023, the operating profit margin decreased significantly to 7.89% from 27.88% in 2022, indicating a notable decline in the company's ability to generate profits from its core operations. This reduction may suggest challenges in controlling operating expenses or declining revenues relative to costs.

Compared to 2021 and 2020, where the operating profit margin was 24.89% and 14.43% respectively, the 2023 margin is lower. This downward trend from the previous years indicates a potential erosion of profitability performance.

Additionally, the operating profit margin in 2023 represents a considerable decrease compared to 2019, where it stood at 11.42%. This long-term perspective highlights a significant decline in the company's operating profitability over the past five years.

Overall, the decreasing trend in Power Integrations Inc.'s operating profit margin from 2022 to 2023 raises concerns about the company's operational efficiency and cost management strategies, which may require further examination to identify and address underlying issues impacting profitability.