Power Integrations Inc (POWI)

Return on assets (ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	55,735	170,851	164,413	71,176	193,468
Total assets	US$ in thousands	819,868	840,096	1,014,490	903,339	803,896
ROA		6.80%	20.34%	16.21%	7.88%	24.07%

December 31, 2023 calculation

ROA = Net income ÷ Total assets
= $55,735K ÷ $819,868K
= 6.80%

Based on the data provided, Power Integrations Inc.'s return on assets (ROA) has varied over the past five years, ranging from a low of 6.80% in 2023 to a high of 24.07% in 2019.

The ROA in 2023 decreased significantly compared to the previous year, dropping from 20.34% in 2022 to 6.80% in 2023. This decline may indicate a decrease in the company's ability to generate earnings relative to its total assets in the most recent period.

In 2022 and 2019, the ROA was relatively high at 20.34% and 24.07% respectively. This suggests that during these years, Power Integrations Inc. was efficient in generating profit from its assets.

The ROA in 2021 and 2020 was 16.21% and 7.88% respectively. While the ROA was higher in 2021 compared to 2020, it was still lower than the peaks of 2019 and 2022. This indicates fluctuating profitability and efficiency in asset utilization during these years.

Overall, fluctuations in Power Integrations Inc.'s ROA over the past five years suggest varying levels of profitability and efficiency in managing and utilizing the company's assets to generate earnings. Further analysis of the company's financial performance and operational strategies may be needed to understand the factors driving these fluctuations.