Powell Industries Inc (POWL)
Inventory 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 672,471 | 630,568 | 604,172 | 567,614 | 533,625 | 518,393 | 491,710 | 474,282 | 466,726 | 462,913 | 448,237 | 446,510 | 468,730 | 493,165 | 522,870 | 538,231 | 518,630 | 499,665 | 490,651 | 481,590 |
| Inventory | US$ in thousands | 69,682 | 63,865 | 66,109 | 58,690 | 55,002 | 50,415 | 48,739 | 43,685 | 36,157 | 29,835 | 28,397 | 30,031 | 29,019 | 28,968 | 31,663 | 31,136 | 32,448 | 29,202 | 29,484 | 24,724 |
| Inventory turnover | 9.65 | 9.87 | 9.14 | 9.67 | 9.70 | 10.28 | 10.09 | 10.86 | 12.91 | 15.52 | 15.78 | 14.87 | 16.15 | 17.02 | 16.51 | 17.29 | 15.98 | 17.11 | 16.64 | 19.48 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $672,471K ÷ $69,682K
= 9.65
The inventory turnover ratio measures how effectively a company manages its inventory by indicating how many times during a specific period the company's inventory is sold and replaced. Powell Industries, Inc.'s inventory turnover has exhibited some variability over the past eight quarters, ranging from 7.93 to 9.33. In general, a higher inventory turnover indicates that the company is selling its inventory more frequently, which is typically seen as a positive indicator of efficiency. However, a too high inventory turnover can also potentially indicate a shortage of inventory, which could result in lost sales. A lower inventory turnover, on the other hand, might signal overstocking or slower sales, potentially leading to higher holding costs and obsolescence risk. Therefore, it is essential for Powell Industries, Inc. to maintain a balance to optimize its inventory management and overall operational efficiency.
Peer comparison
Dec 31, 2023
Dec 31, 2023