Power Integrations Inc (POWI)

Return on assets (ROA)

		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
Net income (ttm)	US$ in thousands	32,234	37,365	42,870	52,814	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
Total assets	US$ in thousands	828,826	824,991	804,760	805,776	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
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%

December 31, 2024 calculation

ROA = Net income (ttm) ÷ Total assets
= $32,234K ÷ $828,826K
= 3.89%

Power Integrations Inc's return on assets (ROA) has shown a fluctuating trend over the past few years. The ROA started at a high of 24.43% as of March 31, 2020, indicating efficient utilization of assets to generate profits. However, there was a gradual decline in ROA, reaching a low of 3.89% by December 31, 2024.

The company's ROA peaked again at 22.84% as of June 30, 2022, showing a temporary recovery, but this was followed by a downward trend. The decreasing ROA figures from June 2023 to December 2024 suggest challenges in effectively generating profits from the company's assets.

Overall, the declining trend in ROA from the initial high levels to the lower figures by the end of the period indicates potential inefficiencies in asset utilization or declining profitability relative to the size of the company's asset base. It would be important for Power Integrations Inc to evaluate its asset management strategies and operational efficiency to improve its return on assets in the future.