Power Integrations Inc (POWI)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.11 | 1.10 | 1.10 | 1.09 | 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 |
The solvency ratios for Power Integrations Inc indicate a very low level of debt relative to its assets, capital, and equity throughout the reporting period from March 2020 to December 2024. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio consistently remained at 0.00, demonstrating a strong financial position with minimal reliance on external borrowing to finance its operations.
The Financial leverage ratio, which measures the company's ability to meet its financial obligations by evaluating how much of its operations are funded by debt, remained relatively stable ranging from 1.09 to 1.14. This indicates that the company maintained a conservative capital structure with a healthy balance between debt and equity financing.
Overall, these solvency ratios suggest that Power Integrations Inc has a robust financial position with low debt levels and a strong ability to meet its financial obligations, which bodes well for its long-term financial stability and growth prospects.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | — | 7.56 | 11.14 | 17.37 | 10.23 | 22.81 | 25.05 | 32.37 | 59.86 | 91.44 | 163.72 | 335.59 | — | — | — | — | — | — | — | — |
Power Integrations Inc's interest coverage ratio has shown a fluctuating trend over the past few years based on the provided data. The interest coverage ratio measures the company's ability to meet its interest obligations with its earnings before interest and taxes (EBIT).
From March 31, 2022, to September 30, 2023, the interest coverage ratio improved significantly, indicating that the company had sufficient earnings to cover its interest expenses comfortably. However, it declined from March 31, 2024, to September 30, 2024, suggesting a potential decrease in earnings relative to interest expenses during that period.
It is important for investors and creditors to monitor the interest coverage ratio closely, as a declining trend may signify decreasing financial stability and an increased risk of default on debt obligations. Maintaining a healthy interest coverage ratio is crucial for a company to demonstrate its ability to manage its debt and generate enough earnings to cover interest expenses effectively.