The business behind the dividend
| Measure | POWI | Median | Formula |
|---|---|---|---|
| Return on equity | 3.3% | 11.7% | Net income ÷ shareholders’ equity |
| Return on capital employed | — | — | Operating income ÷ (equity + total debt) |
| Owner earnings | $24.89m | $632.00m | Net income + depreciation & amortisation − capital expenditure |
| Free cash flow | $87.12m | $746.10m | Operating cash flow − capital expenditure |
| Operating margin | 2.3% | 15.0% | Operating income ÷ revenue |
| Net margin | 5.0% | 10.2% | Net income ÷ revenue |
| Debt to equity | — | — | Total debt ÷ shareholders’ equity |
| Interest cover | — | — | Operating income ÷ interest expense |
| Current ratio | 6.51x | 1.25x | Current assets ÷ current liabilities |
| Long-term debt to working capital | — | — | Long-term debt ÷ (current assets − current liabilities) |
| Cash conversion | 5.05x | 1.78x | Operating cash flow ÷ net income |
Not computed here: Debt to equity, Long-term debt to working capital, Interest cover, Return on capital employed — why a blank is not a zero.
Ten years of it
The same measures, for every year the filings support. One year is a fact; a row is a business.
| Measure | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | Median |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Return on equity | 3.3% | 4.3% | 7.4% | 22.6% | 18.0% | 8.8% | 26.7% | 13.3% | 5.0% | 9.7% | 8.8% |
| Operating margin | 2.3% | 4.3% | 7.9% | 27.7% | 24.9% | 14.4% | 51.6% | 13.4% | 13.3% | 12.5% | 13.3% |
| Net margin | 5.0% | 7.7% | 12.5% | 26.2% | 23.4% | 14.6% | 46.0% | 16.8% | 6.4% | 12.5% | 12.5% |
| Current ratio | 6.51x | 9.29x | 10.47x | 8.99x | 9.50x | 9.62x | 10.72x | 6.87x | 7.14x | 7.24x | 8.99x |
| Cash conversion | 5.05x | 2.52x | 1.18x | 1.26x | 1.40x | 1.77x | 1.16x | 1.20x | 2.97x | 2.00x | 1.40x |
How it compares in technology
Among the 42 technology companies here measured on free cash flow, Power Integrations pays out less than 6 of them. The median for that group is 28.6%, against this company’s 54.1%.
Closest on free cash flow
- Automatic Data Processing (ADP) 50.1%
- International Business Machines (IBM) 51.7%
- Universal Display Corp \Pa\ (OLED) 55.4%
- Kulicke & Soffa Industries (KLIC) 56.1%
Same sector and same denominator, so the figures are comparable. All 46 in technology →