Power Integrations Inc (POWI)

Financial leverage ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total assets	US$ in thousands	819,868	840,096	1,014,490	903,339	803,896
Total stockholders’ equity	US$ in thousands	752,241	755,216	912,032	810,411	724,546
Financial leverage ratio		1.09	1.11	1.11	1.11	1.11

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $819,868K ÷ $752,241K
= 1.09

The financial leverage ratio of Power Integrations Inc. has shown a slight decrease from 1.11 in 2022 to 1.09 in 2023. This indicates that the company's reliance on debt to finance its operations has decreased slightly. However, it is important to note that from 2021 to 2023, the financial leverage ratio remained relatively stable at 1.11, suggesting a consistent level of debt financing over this period. Overall, the trend in the financial leverage ratio indicates moderate stability in the company's capital structure and debt management practices.