Powell Industries Inc (POWL)
Inventory 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 824,156 | 785,043 | 725,979 | 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 |
| Inventory | US$ in thousands | 85,873 | 85,139 | 82,075 | 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 |
| Inventory turnover | 9.60 | 9.22 | 8.85 | 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 |
September 30, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $824,156K ÷ $85,873K
= 9.60
Powell Industries Inc's inventory turnover has exhibited fluctuations over the last few quarters, ranging from a low of 8.85 in March 2024 to a high of 17.29 in March 2020. The company's inventory turnover indicates the number of times inventory is sold and replaced over a specific period. A higher inventory turnover ratio typically signifies efficient management of inventory levels and swift sales, whereas a lower ratio may indicate slower sales or excessive inventory on hand.
It is observed that Powell Industries Inc's inventory turnover has generally been above 9, indicating a reasonable efficiency in managing its inventory levels. However, the downward trend from the peak of 17.29 in March 2020 to the recent low of 8.85 in March 2024 suggests a potential concern in inventory management efficiency. The company should assess the reasons behind this decline and take necessary steps to optimize their inventory levels to improve their turnover ratio.
Overall, Powell Industries Inc should closely monitor its inventory turnover ratio to ensure that inventory levels are in line with sales demand and to maintain operational efficiency in its inventory management processes.
Peer comparison
Sep 30, 2024
Sep 30, 2024