Power Integrations Inc (POWI)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.11 | 1.09 | 1.11 | 1.11 | 1.11 |
Based on the provided data, Power Integrations Inc has consistently maintained a strong solvency position, as indicated by its solvency ratios.
1. Debt-to-assets ratio: The company has maintained a debt-to-assets ratio of 0.00 for each year from 2020 to 2024. This suggests that the company has not relied on debt to finance its assets during this period, indicating minimal financial risk related to asset coverage.
2. Debt-to-capital ratio: Similar to the debt-to-assets ratio, the debt-to-capital ratio has also been consistently at 0.00 across the five years from 2020 to 2024. This implies that the company's capital structure has been predominantly equity-funded rather than debt-funded.
3. Debt-to-equity ratio: Power Integrations Inc has shown a debt-to-equity ratio of 0.00 for each year from 2020 to 2024. This ratio reinforces the company's minimal reliance on debt financing relative to equity, highlighting a strong financial position in terms of leverage.
4. Financial leverage ratio: The financial leverage ratio, which indicates the proportion of a company's assets that are financed by debt, has been relatively stable around 1.11 for the years 2020, 2021, and 2022, but slightly decreased to 1.09 in 2023 before returning to 1.11 in 2024. This suggests that the company has a moderate level of financial leverage, with a slight reduction in debt usage in 2023 followed by a return to previous levels.
Overall, based on these solvency ratios, Power Integrations Inc appears to have a strong financial position with minimal debt obligations and a sound capital structure.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | — | — | 59.86 | 162.54 | 14.80 |
The interest coverage ratio for Power Integrations Inc has shown a consistently strong performance over the years based on the provided data.
As of December 31, 2020, the interest coverage ratio was reported at 14.80, indicating that the company generated operating income more than 14 times its interest expense during that period. This level of coverage suggests that Power Integrations was comfortably able to meet its interest obligations.
By December 31, 2021, the interest coverage ratio significantly improved to 162.54, reflecting a substantial increase in the company's ability to cover its interest expenses. This substantial increase indicates a robust financial position and a healthy cash flow generation.
The interest coverage ratio slightly decreased to 59.86 by December 31, 2022, but remained at a level that indicates the company's ability to comfortably cover its interest obligations with operating income.
It is worth noting that the data shows "—" for the interest coverage ratios for December 31, 2023, and December 31, 2024. This may indicate missing information or that the company did not report data for these periods.
Overall, based on the available data, Power Integrations Inc has exhibited a strong ability to cover its interest expenses comfortably, reflecting sound financial management and operational efficiency.