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