Power Integrations Inc (POWI)

Return on assets (ROA)

		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
Net income (ttm)	US$ in thousands	55,735	64,279	90,447	131,478	170,851	188,736	184,806	170,863	164,413	150,991	123,777	95,088	71,176	202,189	204,468	202,121	193,468	57,913	58,481	63,017
Total assets	US$ in thousands	819,868	865,490	859,457	851,405	840,096	837,963	809,004	919,195	1,014,490	1,004,990	967,849	944,719	903,339	876,068	853,777	827,439	803,896	636,410	620,389	600,505
ROA		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%	24.07%	9.10%	9.43%	10.49%

December 31, 2023 calculation

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

The return on assets (ROA) of Power Integrations Inc. has shown a decreasing trend over the past quarters. In Q4 2023, the ROA was reported at 6.80%, down from 7.43% in Q3 2023 and significantly lower compared to Q2 and Q1 2023, which stood at 10.52% and 15.44% respectively. This downward trend is consistent with the previous quarters of 2022, where the ROA experienced a gradual decline from 22.84% in Q2 to 18.59% in Q1.

The decreasing ROA indicates that the company is generating less profit relative to its total assets. This could be due to a decline in profitability, inefficient asset utilization, or potential challenges in managing costs and expenses. Power Integrations Inc. may need to focus on improving profitability, optimizing asset deployment, and enhancing operational efficiency to reverse this downward trend in ROA and enhance overall financial performance.