Powell Industries Inc (POWL)

The number of days of payables is a financial ratio that measures the average number of days it takes for a company to pay its trade payables. A lower number of days of payables generally indicates that the company is paying its suppliers more quickly, whereas a higher number of days suggests that the company is taking longer to settle its outstanding obligations.

Looking at the trend in Powell Industries, Inc.'s number of days of payables over the past five years, we observe fluctuations in the company's payment behavior. In 2023, Powell Industries, Inc. reduced its number of days of payables to 37.49 days from 51.72 days in 2022. This could indicate that the company is now paying its suppliers more promptly, which can be viewed positively as it strengthens the company's relationship with its vendors and suppliers.

Comparing 2023 to earlier years, we see that Powell Industries, Inc.'s number of days of payables is lower than in 2021 and 2019, but higher than in 2020. This historical perspective suggests that the company has shown variability in its payment terms over the years. The reduction in the number of days of payables from 2022 to 2023 may indicate a deliberate effort by the company to manage its working capital more efficiently.

It is important to note that the number of days of payables should be considered in conjunction with other financial ratios, such as the company's liquidity, profitability, and overall financial health, to gain a comprehensive understanding of Powell Industries, Inc.'s financial performance and operational efficiency. Additionally, an analysis of industry benchmarks and peer comparisons can provide further insights into the company's payment practices and competitiveness within its sector.

Peer comparison

Sep 30, 2023