Power Integrations Inc (POWI)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	752,241	755,216	912,032	810,411	724,546
ROE		7.41%	22.62%	18.03%	8.78%	26.70%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $55,735K ÷ $752,241K
= 7.41%

The return on equity (ROE) of Power Integrations Inc. has varied over the past five years. In 2023, the ROE decreased to 7.41% from 22.62% in 2022, indicating a significant decline in the company's ability to generate profits from shareholders' equity. This decrease may raise concerns about the company's efficiency in utilizing shareholder funds to generate returns.

The ROE was also lower in 2021 at 18.03% compared to 2022, suggesting a decline in profitability during that period. However, the ROE rebounded in 2020 to 8.78% from the 2019 figure of 26.70%, indicating improved profitability relative to the previous year.

Overall, the fluctuating ROE values of Power Integrations Inc. suggest varying levels of efficiency in utilizing shareholders' equity to generate profits over the past five years. Further analysis is required to understand the underlying factors driving these changes and to assess the company's overall financial performance.