Power Integrations Inc (POWI)

Financial leverage ratio

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
Total assets US$ in thousands 819,868 865,490 859,457 851,405 840,096 837,963 809,004 919,195 1,014,490 1,004,990 967,849 944,719 903,339 876,068 853,777 827,439 803,896 636,410 620,389 600,505
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
Financial leverage ratio 1.09 1.10 1.12 1.12 1.11 1.12 1.14 1.12 1.11 1.11 1.11 1.11 1.11 1.12 1.12 1.11 1.11 1.13 1.14 1.13

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 been relatively stable over the past eight quarters, ranging from 1.09 to 1.14. This indicates that the company has been maintaining a consistent level of debt relative to its equity during this period. A financial leverage ratio above 1 suggests that the company has more debt than equity in its capital structure.

The slight fluctuations in the ratio from quarter to quarter may be attributed to changes in the company's borrowing activities or variations in its asset and liability composition. Overall, a stable financial leverage ratio can reflect a prudent approach to managing debt levels and financial risk.

It is important to note that while a higher financial leverage ratio can amplify returns on equity when business is good, it also increases the financial risk and potential for financial distress during economic downturns. Therefore, monitoring this ratio over time is crucial for assessing the company's capital structure and financial health.


Peer comparison

Dec 31, 2023