Power Integrations Inc (POWI)

Financial leverage ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Total assets US$ in thousands 828,826 819,868 840,096 1,014,490 903,339
Total stockholders’ equity US$ in thousands 749,772 752,241 755,216 912,032 810,411
Financial leverage ratio 1.11 1.09 1.11 1.11 1.11

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $828,826K ÷ $749,772K
= 1.11

The financial leverage ratio of Power Integrations Inc has been relatively stable over the past five years. As of December 31, 2020, the ratio stood at 1.11 and remained consistent at the same level for the subsequent years up to December 31, 2022. However, there was a slight decrease in the ratio to 1.09 as of December 31, 2023, before returning to 1.11 by December 31, 2024. This indicates that the company has maintained a conservative level of debt relative to its equity throughout the period, which may suggest a lower financial risk and stronger financial position.