Powell Industries Inc (POWL)
Fixed asset turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,024,710 | 1,399,130 | 1,065,850 | 941,620 | 1,037,320 |
| Property, plant and equipment | US$ in thousands | 103,421 | 97,625 | 98,628 | 109,457 | 114,372 |
| Fixed asset turnover | 19.58 | 14.33 | 10.81 | 8.60 | 9.07 |
September 30, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,024,710K ÷ $103,421K
= 19.58
Fixed asset turnover is a financial ratio that measures a company's efficiency in generating revenue from its investment in fixed assets. Powell Industries Inc's fixed asset turnover has exhibited an increasing trend over the last five years, with values of 19.58, 14.33, 10.81, 8.60, and 9.07 for the years ending September 30, 2024, 2023, 2022, 2021, and 2020, respectively.
The significant increase in fixed asset turnover indicates that Powell Industries Inc has been able to generate more revenue relative to its investment in fixed assets over the years. This improvement suggests that the company is utilizing its fixed assets more effectively to generate sales, which can result in higher profitability and better operational efficiency.
A higher fixed asset turnover ratio is generally considered favorable as it signifies that the company is making efficient use of its fixed assets to drive revenue growth. Powell Industries Inc's consistent improvement in fixed asset turnover reflects a positive trend in the company's operational performance and efficiency in utilizing its fixed assets to generate revenue.
Peer comparison
Sep 30, 2024