Power Integrations Inc (POWI)
Operating return on assets (Operating ROA)
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 |
Total assets | US$ in thousands | 819,868 | 865,490 | 859,457 | 851,405 | 840,096 | 837,963 | 809,004 | 919,195 | 1,014,490 | 1,004,990 | 967,849 | 944,719 | 903,339 | 876,068 | 853,777 | 827,439 | 803,896 | 636,410 | 620,389 | 600,505 |
Operating ROA | 4.28% | 6.59% | 10.20% | 15.87% | 21.48% | 24.32% | 24.85% | 20.23% | 17.26% | 15.77% | 13.19% | 10.12% | 7.80% | 25.84% | 26.84% | 27.31% | 27.00% | 6.51% | 6.76% | 7.96% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $35,059K ÷ $819,868K
= 4.28%
Operating Return on Assets (ROA) is a key financial metric that indicates the efficiency with which Power Integrations Inc. generates operating profits relative to its total assets. The trend of Power Integrations Inc.'s operating ROA over the past eight quarters shows a gradual decline from a high of 24.99% in Q2 2022 to 4.28% in Q4 2023. This decreasing trend suggests a potential inefficiency in utilizing the company's assets to generate operating profits.
The operating ROA of Power Integrations Inc. declined significantly from Q2 2023 (10.20%) to Q4 2023 (4.28%). This sharp decline may indicate challenges or inefficiencies in the company's operations during the most recent quarter. It is important for investors and stakeholders to monitor this trend closely to assess whether this decline is a short-term fluctuation or a sustained issue affecting the company's profitability.
Comparing the most recent operating ROA figure of 4.28% in Q4 2023 to the eight-quarter historical data, it is evident that the company's current efficiency in generating operating profits relative to its assets is at a relatively low point. Investors should consider investigating the factors contributing to this decline and assess the company's strategy for improving operational efficiency and profitability in the future.
Peer comparison
Dec 31, 2023