Power Integrations Inc (POWI)
Pretax margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 30,754 | 45,907 | 183,426 | 176,135 | 75,251 |
| Revenue | US$ in thousands | 418,973 | 444,538 | 651,138 | 703,277 | 488,318 |
| Pretax margin | 7.34% | 10.33% | 28.17% | 25.04% | 15.41% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $30,754K ÷ $418,973K
= 7.34%
The pretax margin for Power Integrations Inc has shown a fluctuating trend over the years based on the provided data. In December 31, 2020, the pretax margin stood at 15.41%, indicating that for every dollar of revenue generated, the company retained approximately 15.41 cents before accounting for taxes.
The pretax margin experienced a significant improvement in the following years, reaching 25.04% by December 31, 2021, and further increasing to 28.17% by December 31, 2022. This upward trend suggests that the company was able to effectively control its operating expenses and increase operational efficiency during these periods.
However, the pretax margin saw a notable decline in the subsequent years, falling to 10.33% by December 31, 2023, and further dropping to 7.34% by December 31, 2024. These declines may indicate challenges or increased costs faced by the company, impacting its profitability before tax.
Overall, Power Integrations Inc's pretax margin analysis highlights the company's varying performance in managing costs and generating profits over the years, showcasing both periods of strength and potential areas for improvement.
Peer comparison
Dec 31, 2024