Power Integrations Inc (POWI)

Pretax 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
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	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	222,414	46,259	46,806	52,240
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
Pretax margin		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%	52.87%	11.58%	11.84%	12.99%

December 31, 2023 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $45,907K ÷ $444,538K
= 10.33%

The pretax margin of Power Integrations Inc. has been showing a decreasing trend over the past eight quarters, starting at 26.27% in Q1 2022 and dropping to 10.33% in Q4 2023. This indicates that the company's profitability before taxes has been declining over time. The downward trajectory suggests potential challenges in managing costs and generating revenue efficiently. Further analysis would be needed to identify the specific factors contributing to this decline and to develop strategies to improve the company's financial performance.