Powell Industries Inc (POWL)
Payables turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 630,568 | 518,395 | 462,913 | 493,163 | 500,365 |
| Payables | US$ in thousands | 56,666 | 63,423 | 45,247 | 35,029 | 51,180 |
| Payables turnover | 11.13 | 8.17 | 10.23 | 14.08 | 9.78 |
September 30, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $630,568K ÷ $56,666K
= 11.13
The payables turnover ratio for Powell Industries, Inc. has shown fluctuating trends over the past five years. It increased from 8.41 in 2019 to 12.10 in 2020, indicating a more efficient management of payables during that period. However, the ratio declined to 8.74 in 2021 before rebounding to 7.06 in 2022 and further increasing to 9.74 in 2023.
A high payables turnover ratio suggests that the company is paying its suppliers more frequently, potentially taking advantage of early payment discounts or maintaining good relationships with suppliers. On the other hand, a lower ratio may indicate that the company is taking longer to settle its payables.
It is important to assess the payables turnover ratio in conjunction with other financial metrics and industry benchmarks to gain a comprehensive understanding of Powell Industries' payables management and financial performance.
Peer comparison
Sep 30, 2023