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