Powell Industries Inc (POWL)
Fixed asset turnover
| 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 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,012,356 | 945,934 | 850,294 | 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 |
| Property, plant and equipment | US$ in thousands | 103,421 | 96,468 | 96,655 | 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 |
| Fixed asset turnover | 9.79 | 9.81 | 8.80 | 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 |
September 30, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $1,012,356K ÷ $103,421K
= 9.79
The fixed asset turnover ratio measures how efficiently a company is using its fixed assets to generate revenue. A higher fixed asset turnover ratio indicates that the company is generating more revenue per dollar of fixed assets.
Based on the data provided for Powell Industries Inc, we can see that the fixed asset turnover ratio has been fluctuating over time. The ratio has shown an increasing trend from 4.49 in December 2019 to 9.81 in June 2024, suggesting that the company has been able to generate more revenue from its fixed assets over the years.
The highest fixed asset turnover ratio of 9.81 in June 2024 signifies that for every dollar invested in fixed assets, the company generated $9.81 in revenue during that period. This indicates a high level of efficiency in utilizing fixed assets to generate sales.
On the other hand, the lowest fixed asset turnover ratio of 4.06 in March 2021 indicates a lower level of efficiency in utilizing fixed assets to generate revenue compared to other periods.
Overall, the trend in Powell Industries Inc's fixed asset turnover ratio suggests that the company has been improving its efficiency in utilizing fixed assets to generate revenue over the years, with some fluctuations along the way. Further analysis and comparison with industry benchmarks can provide additional insights into the company's performance in this aspect.
Peer comparison
Sep 30, 2024