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 | ||
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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