Power Integrations Inc (POWI)

Operating 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
Operating income (ttm)	US$ in thousands	35,059	57,002	87,661	135,122	180,412	203,824	201,045	185,919	175,058	158,481	127,630	95,579	70,487	226,403	229,160	225,995	217,022	41,422	41,949	47,808
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
Operating profit margin		7.89%	11.88%	17.04%	23.49%	27.71%	29.16%	28.10%	26.12%	24.89%	23.26%	20.40%	17.30%	14.43%	50.08%	51.48%	51.23%	51.59%	10.37%	10.61%	11.89%

December 31, 2023 calculation

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

Power Integrations Inc.'s operating profit margin has been gradually decreasing over the past quarters. The operating profit margin was at its peak in Q4 2022 at 27.88% and has since declined to 7.89% in Q4 2023. This significant decrease indicates that the company's profitability in relation to its revenue has been decreasing steadily.

The trend suggests that the company may be facing challenges in controlling its operating expenses or generating sufficient revenue to maintain its historical profit margins. Investors and analysts may want to further investigate the factors contributing to this decline in operating profit margin to assess the company's financial health and sustainability.