Powell Industries Inc (POWL)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Receivables turnover | 4.72 | 5.46 | 4.62 | 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 |
| Payables turnover | 11.19 | 9.85 | 9.10 | 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 |
| Working capital turnover | 2.91 | 2.98 | 3.09 | 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 |
Powell Industries Inc's activity ratios provide insights into the efficiency of the company's operations in managing its inventory, receivables, payables, and working capital.
1. Inventory Turnover: Powell Industries Inc has maintained a relatively stable inventory turnover rate over the periods, ranging between 8.85 and 10.86. This indicates that the company is efficiently managing its inventory and turning over its stock a reasonable number of times throughout the year.
2. Receivables Turnover: The company's receivables turnover ratio has shown some fluctuation but generally improved over time, with values ranging between 3.19 and 7.37. This suggests that Powell Industries Inc has been able to collect its receivables more effectively over the periods analyzed.
3. Payables Turnover: Powell Industries Inc's payables turnover ratio has been inconsistent, varying between 8.17 and 16.73. A high payables turnover ratio indicates that the company is paying off its creditors quickly, while a lower ratio may signal potential cash flow or liquidity issues.
4. Working Capital Turnover: The working capital turnover ratio for Powell Industries Inc has also shown fluctuations but has generally remained around 2.50 to 3.15. This ratio reflects how efficiently the company is utilizing its working capital to generate sales revenue.
Overall, the analysis of these activity ratios suggests that Powell Industries Inc has been effectively managing its inventory, receivables, payables, and working capital to support its operational activities and generate revenue. It is important for the company to continue monitoring and optimizing these ratios to ensure ongoing operational efficiency and financial performance.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 38.03 | 39.58 | 41.26 | 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 |
| Days of sales outstanding (DSO) | days | 77.32 | 66.90 | 79.02 | 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 |
| Number of days of payables | days | 32.61 | 37.05 | 40.10 | 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 |
Analyzing Powell Industries Inc's activity ratios over the past few quarters, we can observe the following trends:
1. Days of Inventory on Hand (DOH): The company's DOH has shown some fluctuation over the quarters but has generally been within the range of around 20 to 40 days. There was a significant increase in DOH from the previous year, indicating the company may be holding more inventory, which could tie up funds and impact liquidity.
2. Days of Sales Outstanding (DSO): Powell Industries Inc's DSO has varied quite a bit, ranging from around 50 to over 100 days. This suggests that the company takes different lengths of time to collect its accounts receivable. A decrease in DSO is generally positive as it indicates better receivables management and quicker cash conversion.
3. Number of Days of Payables: The number of days of payables has also shown variability, with figures ranging from 20 to 45 days. A higher number of days of payables means the company is taking longer to pay its suppliers, which can improve cash flow but may strain supplier relationships.
Overall, Powell Industries Inc's activity ratios indicate some areas for improvement in managing inventory, receivables, and payables efficiently to optimize working capital and enhance liquidity.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 9.79 | 9.81 | 8.80 | 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 |
| Total asset turnover | 1.09 | 1.09 | 1.00 | 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 |
Powell Industries Inc's long-term activity ratios provide insights into how efficiently the company is utilizing its assets to generate revenue. The fixed asset turnover ratio has been relatively stable over the periods, ranging between 4.06 to 9.81 times. This indicates that Powell Industries Inc generated between 4.06 to 9.81 times of revenue for every dollar invested in fixed assets, with higher values suggesting better asset utilization efficiency.
On the other hand, the total asset turnover ratio has shown more fluctuation, ranging from 0.93 to 1.28 times. This ratio measures how efficiently the company is utilizing all its assets to generate sales. A total asset turnover ratio above 1 indicates that Powell Industries Inc is generating more revenue than the value of its total assets, which could be a positive sign of effective asset management.
Overall, both ratios provide valuable insights into Powell Industries Inc's operational efficiency and effectiveness in using its assets to generate sales. It is essential for the company to maintain or improve these ratios over time to ensure sustainable growth and profitability.