Powell Industries Inc (POWL)
Payables 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 |
| Payables | US$ in thousands | 50,173 | 56,666 | 62,849 | 51,209 | 38,632 | 63,423 | 46,235 | 48,697 | 42,348 | 45,247 | 33,416 | 39,598 | 28,012 | 35,029 | 38,512 | 44,106 | 45,166 | 51,180 | 38,483 | 33,565 |
| Payables turnover | 13.40 | 11.13 | 9.61 | 11.08 | 13.81 | 8.17 | 10.64 | 9.74 | 11.02 | 10.23 | 13.41 | 11.28 | 16.73 | 14.08 | 13.58 | 12.20 | 11.48 | 9.76 | 12.75 | 14.35 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $672,471K ÷ $50,173K
= 13.40
The payables turnover ratio measures how efficiently a company is managing its accounts payable by evaluating the number of times a company pays off its suppliers during a specific period.
Powell Industries, Inc.'s payables turnover ratio has demonstrated some fluctuations over the past eight quarters. The ratio shows an upward trend from the third quarter of 2022 to the third quarter of 2023, which indicates that the company has been more efficient in paying off its suppliers during this period. However, there was a significant dip in the payables turnover ratio in the second quarter of 2022. This suggests that Powell Industries, Inc. took longer to pay off its suppliers during that specific period.
Overall, the payables turnover ratio has shown some volatility, indicating potential changes in the company's payment patterns. This trend should be further analyzed to identify the factors contributing to these fluctuations in order to have a comprehensive understanding of the company's payment management.
Peer comparison
Dec 31, 2023