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.