Powell Industries Inc (POWL)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Receivables turnover | 4.52 | 3.39 | 3.19 | 3.52 | 3.67 | 5.04 | 4.86 | 5.28 | 5.91 | 6.00 | 6.29 | 6.35 | 6.34 | 7.37 | 5.67 | 6.29 | 5.36 | 4.60 | 4.64 | 6.02 |
| 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 |
| Working capital turnover | 3.10 | 3.09 | 3.08 | 3.10 | 2.99 | 2.91 | 2.78 | 2.69 | 2.66 | 2.60 | 2.53 | 2.52 | 2.68 | 2.84 | 3.08 | 3.26 | 3.15 | 3.03 | 3.20 | 3.18 |
The activity ratios of Powell Industries, Inc. provide insight into the efficiency of the company's operations.
The inventory turnover ratio measures how effectively the company is managing its inventory. Powell Industries' inventory turnover has been relatively stable over the past eight quarters, ranging from 7.93 to 9.33. This indicates that the company is efficiently managing its inventory levels and turning over its inventory approximately 8 times a year on average.
The receivables turnover ratio reflects how quickly the company collects its outstanding receivables. Powell Industries' receivables turnover has shown some fluctuation, with a peak of 5.01 in September 2022 and a low of 3.19 in June 2023. This suggests some variability in the company's ability to collect on its receivables efficiently.
The payables turnover ratio measures how quickly the company is paying its suppliers. Powell Industries' payables turnover ratio has varied, with a low of 7.06 in September 2022 and a high of 11.95 in December 2022. This indicates some variability in the company's payment practices to its suppliers.
The working capital turnover ratio reflects how efficiently the company is using its working capital to generate sales. Powell Industries' working capital turnover has shown a gradual increase over the past eight quarters, indicating improved efficiency in utilizing its working capital to support sales.
Overall, Powell Industries' activity ratios demonstrate a generally efficient management of inventory and working capital. However, there are some fluctuations in the receivables and payables turnover ratios, which may warrant further investigation into the company's credit and payment practices.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 37.82 | 36.97 | 39.94 | 37.74 | 37.62 | 35.50 | 36.18 | 33.62 | 28.28 | 23.52 | 23.12 | 24.55 | 22.60 | 21.44 | 22.10 | 21.11 | 22.84 | 21.33 | 21.93 | 18.74 |
| Days of sales outstanding (DSO) | days | 80.70 | 107.81 | 114.26 | 103.78 | 99.54 | 72.46 | 75.14 | 69.10 | 61.77 | 60.81 | 58.04 | 57.50 | 57.54 | 49.55 | 64.42 | 58.03 | 68.06 | 79.30 | 78.73 | 60.59 |
| Number of days of payables | days | 27.23 | 32.80 | 37.97 | 32.93 | 26.42 | 44.66 | 34.32 | 37.48 | 33.12 | 35.68 | 27.21 | 32.37 | 21.81 | 25.93 | 26.88 | 29.91 | 31.79 | 37.39 | 28.63 | 25.44 |
Days of inventory on hand (DOH) measures the number of days the company takes to sell its inventory. Powell Industries, Inc. experienced a slight increase in DOH from 43.09 days at the end of December 2023 to 46.02 days at the end of June 2023, before decreasing to 42.25 days at the end of September 2023. This indicates that the company's inventory turnover has been relatively stable over the period.
Days of sales outstanding (DSO) represents the average number of days it takes for the company to collect payment after making a sale. Powell Industries, Inc. witnessed a significant increase in DSO from 72.79 days at the end of September 2022 to 114.34 days at the end of June 2023, before decreasing to 80.74 days at the end of December 2023. This fluctuation suggests a potential change in the company's credit and collection policies.
Number of days of payables measures the average number of days it takes for the company to pay its suppliers. Powell Industries, Inc. experienced volatility in the number of days of payables, with the figure fluctuating from 30.53 days at the end of March 2022 to 51.72 days at the end of September 2022, before decreasing to 31.03 days at the end of December 2023. This indicates variability in the company's payment practices and relationships with suppliers.
Overall, Powell Industries, Inc. should focus on optimizing its inventory management and collection processes to improve its working capital management and operational efficiency. Additionally, the company should strive for consistency in its payment practices to maintain strong supplier relationships.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 7.80 | 7.17 | 6.75 | 6.12 | 5.61 | 5.42 | 4.92 | 4.53 | 4.38 | 4.30 | 4.06 | 4.03 | 4.28 | 4.54 | 4.81 | 4.95 | 4.49 | 4.28 | 4.13 | 3.99 |
| Total asset turnover | 0.95 | 0.93 | 0.97 | 1.02 | 1.08 | 1.08 | 1.11 | 1.09 | 1.11 | 1.08 | 1.08 | 1.04 | 1.10 | 1.10 | 1.13 | 1.28 | 1.16 | 1.11 | 1.15 | 1.18 |
The fixed asset turnover ratio for Powell Industries, Inc. has been showing an increasing trend over the past eight quarters, from 4.53 in March 2022 to 7.80 in December 2023. This indicates that the company is generating more revenue per dollar of fixed assets, reflecting improved efficiency in utilizing its long-term assets to generate sales.
On the other hand, the total asset turnover ratio has shown some volatility, fluctuating between 0.93 and 1.08 over the same period. This may suggest varying levels of efficiency in generating sales from all assets, including both short-term and long-term assets. Overall, the trend implies that the company's ability to utilize all its assets to generate sales has been relatively stable, albeit with some variations.
It is important to note that the interpretation of these ratios should be complemented with a deeper analysis of the company's operations, industry benchmarks, and other financial metrics to gain a comprehensive understanding of Powell Industries, Inc.'s long-term activity performance.