Power Integrations Inc (POWI)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 53.64% | 53.00% | 52.43% | 51.82% | 51.50% | 52.13% | 53.68% | 55.66% | 56.35% | 56.18% | 54.84% | 52.96% | 51.28% | 50.12% | 49.43% | 49.15% | 49.88% | 50.39% | 50.86% | 50.87% |
| Operating profit margin | 4.28% | 3.21% | 4.62% | 6.92% | 7.89% | 11.88% | 17.04% | 23.49% | 27.71% | 29.16% | 28.10% | 26.12% | 24.89% | 23.26% | 20.40% | 17.30% | 14.43% | 50.08% | 51.48% | 51.23% |
| 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% |
| Net profit margin | 7.69% | 9.27% | 10.38% | 12.28% | 12.54% | 13.40% | 17.58% | 22.85% | 26.24% | 27.00% | 25.83% | 24.01% | 23.38% | 22.16% | 19.78% | 17.21% | 14.58% | 44.72% | 45.94% | 45.82% |
Power Integrations Inc's profitability ratios have shown varying trends over the past few years. The gross profit margin has generally increased from around 50% in 2020 to over 50% in 2024, indicating improved efficiency in generating revenue after accounting for the cost of goods sold.
However, the operating profit margin has been more volatile, starting high at over 50% in 2020 before declining significantly in 2023 and 2024. This suggests that the company's operating expenses have had a more significant impact on profitability in recent years.
Similarly, the pretax margin also followed a similar pattern, with a peak around 29.5% in 2022 but decreasing thereafter to around 6.4% by the end of 2024. This indicates that factors affecting profitability before tax, such as interest expenses and non-operating income, have impacted the company's overall financial performance.
Lastly, the net profit margin, which represents the company's bottom-line profitability, has shown a gradual decline from around 46% in 2020 to below 10% by the end of 2024. This downward trend suggests that despite improvements in gross profit, operating efficiency, and pre-tax margins, the company's net profit has been significantly impacted by factors such as taxes and other income or expenses.
In summary, while Power Integrations Inc has been able to maintain a healthy gross profit margin, the declining trend in operating profit, pre-tax, and net profit margins indicates challenges in cost management and overall profitability in recent years. It would be important for the company to address these issues to sustain long-term financial health.
Return on investment
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 2.16% | 1.57% | 2.37% | 3.69% | 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% |
| Return on assets (ROA) | 3.89% | 4.53% | 5.33% | 6.55% | 6.80% | 7.43% | 10.52% | 15.44% | 20.34% | 22.52% | 22.84% | 18.59% | 16.21% | 15.02% | 12.79% | 10.07% | 7.88% | 23.08% | 23.95% | 24.43% |
| Return on total capital | 2.39% | 1.73% | 2.61% | 4.03% | 4.66% | 7.26% | 11.42% | 17.73% | 23.89% | 27.17% | 28.31% | 22.66% | 19.19% | 17.45% | 14.66% | 11.19% | 8.70% | 29.03% | 30.17% | 30.38% |
| Return on equity (ROE) | 4.30% | 4.99% | 5.87% | 7.15% | 7.41% | 8.19% | 11.78% | 17.25% | 22.62% | 25.16% | 26.02% | 20.82% | 18.03% | 16.62% | 14.22% | 11.14% | 8.78% | 25.93% | 26.92% | 27.17% |
Power Integrations Inc's profitability ratios have shown a declining trend over the last few quarters. Operating return on assets (Operating ROA) decreased from a high of 27.31% in March 2020 to 1.57% in September 2024, indicating a decrease in the company's ability to generate profit from its assets through operations.
Similarly, Return on assets (ROA) declined from 24.43% in March 2020 to 3.89% in December 2024, showing a diminishing ability to generate profit relative to its total assets.
Return on total capital also exhibited a downward trend, dropping from 30.38% in March 2020 to 1.73% in September 2024, signaling a reduction in the company's efficiency in generating profits from its total capital employed.
Return on equity (ROE) followed a similar pattern, decreasing from 27.17% in March 2020 to 4.30% in December 2024, reflecting a declining profitability for the company's shareholders.
Overall, the decreasing profitability ratios suggest that Power Integrations Inc's performance in terms of generating profit from assets, total capital, and shareholders' equity has weakened over the evaluated period. This trend may raise concerns among investors and stakeholders about the company's financial health and operational efficiency.