A

Power Integrations, Inc. — Earnings Quality Grade A

POWI · Technology

Strong financial health

Revenue
$444M
2025
Net Income
$22M
2025
Gross Margin
54.5%
Free Cash Flow
$87M
01

Screening Summary

14
Passed
1
Watch
0
Failed
-3.38
M-Score

Management Signals

View all →
Routine2025-11-18
Nancy Erba · DirectorDeparture
SEC
Routine2025-11-18
Nancy Erba · Chief Financial OfficerAppointment
Standard appointment
SEC

Source: SEC EDGAR 8-K Item 5.02, with exhibit links when available

02

Financial Trends

Revenue & Net Income ($B)

Margins (%)

03

18-Point Screening

01

Revenue Quality

A1DSO Change

DSO 15 days, change -9 days YoY

A2AR vs Revenue Growth

AR growth -32.8% vs revenue growth 5.9%

A3Revenue vs CFFO

Revenue 5.9%, CFFO 37.4%. Cash follows revenue

02

Expense Quality

B1Inventory vs COGS

Inventory 0.8% vs COGS 3.9%. Normal

!
B2CapEx vs Revenue

CapEx growth 41.1% is >2x revenue growth 5.9%

B3SG&A Ratio

SG&A/Gross Profit = 45.8%. Normal

B4Gross Margin

Gross margin 54.5%, change +0.8pp. Stable

03

Cash Flow Quality

C1CFFO vs Net Income

CFFO/NI = 5.05. Profits backed by cash

C2Free Cash Flow

FCF $0.1B, FCF/NI = 3.94

C3Accruals Ratio

Accruals ratio = -11.6%. Low accruals

C4Cash vs Debt

Insufficient data

04

Balance Sheet Health

D1Goodwill + Intangibles

Goodwill+Intangibles $0.1B = 15% of equity. Manageable

D2Leverage

Insufficient data

D3Soft Asset Growth

Other assets 15.1% vs revenue 5.9%. Normal

D4Asset Impairment

No write-off data

05

Acquisition Risk

E1Serial Acquirer FCF

FCF after acquisitions positive

E2Goodwill Surge

Goodwill+Intangibles change -1% YoY. Normal

06

Manipulation Score

F1Beneish M-Score

M-Score = -3.38 (< -2.22). Unlikely manipulator

04

Beneish M-Score

Manipulation Probability-3.38
-4.0 Clean-2.22 Grey-1.78 Danger0
0.635
DSRI
AR growing faster than revenue?
0.985
GMI
Gross margin declining?
1.087
AQI
Asset quality deteriorating?
1.059
SGI
Revenue growth rate
1.17
DEPI
Depreciation slowing?
0.986
SGAI
SG&A ratio changing?
-0.1158
TATA
Accruals level
1.365
LVGI
Leverage increasing?
05

Altman Z-Score

13.34
Safe Zone
0 Distress1.102.605.0+ Safe
0.5024
Liquidity
0.8727
Cumulative profit
0.0132
Operating efficiency
6.7717
Leverage

Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25