Power Integrations Inc (POWI)

Debt-to-capital ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	752,241	755,216	912,032	810,411	724,546
Debt-to-capital ratio		0.00	0.00	0.00	0.00	0.00

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $752,241K)
= 0.00

Based on the data provided, Power Integrations Inc. has consistently maintained a debt-to-capital ratio of 0.00 across the years 2019 to 2023. A debt-to-capital ratio of 0.00 indicates that the company has not utilized any debt to finance its operations relative to its total capital structure. This implies that the company has relied solely on equity financing, which can be seen as a positive indicator of financial stability and creditworthiness. It suggests that the company may have a strong balance sheet and is not burdened by significant debt obligations, reducing its financial risk and potential for default. However, it is also important to consider that a low or zero debt-to-capital ratio may limit the company's ability to leverage debt for potential growth opportunities or tax advantages. Overall, maintaining a consistent debt-to-capital ratio of 0.00 over multiple years indicates a prudent approach to capital structure management by Power Integrations Inc.