Power Integrations Inc (POWI)

Pretax margin

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	30,754	25,682	32,200	42,408	45,907	65,353	93,875	139,296	183,426	206,154	202,580	186,953	176,135	160,087	129,907	99,163	75,251	232,389	235,347	232,012
Revenue (ttm)	US$ in thousands	418,973	403,230	412,904	429,929	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
Pretax margin		7.34%	6.37%	7.80%	9.86%	10.33%	13.62%	18.25%	24.21%	28.17%	29.49%	28.31%	26.27%	25.04%	23.50%	20.76%	17.95%	15.41%	51.40%	52.87%	52.59%

December 31, 2024 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $30,754K ÷ $418,973K
= 7.34%

Power Integrations Inc's pretax margin has shown a fluctuating trend over the period from March 31, 2020, to December 31, 2024. The company experienced a substantial increase in pretax margin from around 52% in the first half of 2020 to over 29% by September 30, 2022. This period reflected the company's ability to effectively control costs and generate higher profits before taxes.

However, the pretax margin started to decline from September 2022 onwards, reaching a low of 6.37% on September 30, 2024. This decline may indicate challenges in maintaining profitability or increasing costs impacting the company's earnings. It's essential for Power Integrations Inc to closely monitor and manage their expenses to sustain profitability levels.

Overall, fluctuations in the pretax margin suggest varying levels of efficiency in cost management and revenue generation within the company. Monitoring and addressing factors impacting pretax margin will be crucial for sustaining profitability and financial health in the future.