Power Integrations Inc (POWI)

Return on equity (ROE)

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 stockholders’ equity US$ in thousands 752,241 785,057 767,929 762,302 755,216 750,282 710,245 820,573 912,032 908,356 870,344 853,823 810,411 779,797 759,472 743,830 724,546 565,328 543,865 531,301
ROE 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% 26.70% 10.24% 10.75% 11.86%

December 31, 2023 calculation

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

To analyze Power Integrations Inc.'s return on equity (ROE) trends based on the provided data, we observe a fluctuating pattern over the past eight quarters.

The ROE for Power Integrations Inc. has shown a downward trend from Q1 2022 to Q4 2023. The ROE has gradually decreased from 26.02% in Q2 2022 to 7.41% in Q4 2023. This decline indicates a decrease in the company's profitability in generating returns for its shareholders compared to its equity.

The peak ROE of 26.02% in Q2 2022 was followed by a consistent decline in subsequent quarters, reaching its lowest point at 7.41% in Q4 2023. This downward trend suggests potential challenges or inefficiencies in utilizing the company's equity to generate profits during the mentioned period.

Overall, monitoring the fluctuations in ROE is crucial for investors and stakeholders to assess the company's financial performance and sustainability in generating returns for shareholders. The decreasing trend in ROE for Power Integrations Inc. warrants further investigation into the factors impacting the company's profitability and operational efficiency.


Peer comparison

Dec 31, 2023