Powell Industries Inc (POWL)
Fixed asset turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 766,793 | 699,796 | 653,831 | 598,957 | 555,377 | 535,053 | 501,832 | 480,115 | 470,930 | 470,939 | 456,201 | 458,430 | 491,256 | 518,713 | 552,500 | 569,863 | 541,877 | 517,010 | 503,556 | 490,106 |
| Property, plant and equipment | US$ in thousands | 98,318 | 97,625 | 96,876 | 97,910 | 99,051 | 98,628 | 102,023 | 105,968 | 107,509 | 109,457 | 112,485 | 113,653 | 114,866 | 114,372 | 114,826 | 115,192 | 120,795 | 120,812 | 121,909 | 122,836 |
| Fixed asset turnover | 7.80 | 7.17 | 6.75 | 6.12 | 5.61 | 5.42 | 4.92 | 4.53 | 4.38 | 4.30 | 4.06 | 4.03 | 4.28 | 4.54 | 4.81 | 4.95 | 4.49 | 4.28 | 4.13 | 3.99 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $766,793K ÷ $98,318K
= 7.80
The fixed asset turnover ratio measures the efficiency of a company in generating sales revenue from its investment in fixed assets. A higher ratio indicates better utilization of fixed assets to generate sales.
Looking at the data for Powell Industries, Inc., we can observe a consistent increase in the fixed asset turnover ratio over the past eight quarters. This upward trend suggests improved efficiency in utilizing the company's fixed assets to generate sales revenue.
In the most recent quarter, the fixed asset turnover ratio stood at 7.80, signifying that for every dollar invested in fixed assets, Powell Industries generated $7.80 in sales. This represents a significant improvement from the ratio of 4.53 reported in the first quarter of 2022.
The improving trend in the fixed asset turnover ratio indicates that Powell Industries has been able to make better use of its fixed assets to drive sales, potentially indicating improvements in operational efficiency or strategic asset management. However, it is important to consider other factors such as industry benchmarks and overall business performance to gain a comprehensive understanding of the company's operational and financial efficiency.
Peer comparison
Dec 31, 2023