Powell Industries Inc (POWL)
Receivables turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,024,710 | 1,399,130 | 1,065,850 | 941,620 | 1,037,320 |
| Receivables | US$ in thousands | 214,466 | 206,691 | 106,216 | 78,465 | 70,424 |
| Receivables turnover | 9.44 | 6.77 | 10.03 | 12.00 | 14.73 |
September 30, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $2,024,710K ÷ $214,466K
= 9.44
The receivables turnover for Powell Industries Inc has been fluctuating over the past five years. In 2024, the receivables turnover ratio stood at 9.44 times, which indicates that the company collected its accounts receivables approximately 9.44 times during the year. This represents an increase compared to the previous year where the ratio was 6.77 times.
A higher receivables turnover ratio generally suggests that the company is efficient in collecting payments from its customers. It could indicate that Powell Industries Inc has improved its credit policies, tightened its collection procedures, or has more prompt-paying customers.
However, it is essential to note that a significant decrease in the receivables turnover ratio from 2010 to 2024 could also be a cause for concern. It may imply a potential issue with collecting payments promptly or a change in the company's customer base or credit policies.
Overall, Powell Industries Inc should continue to monitor its receivables turnover ratio and implement strategies to ensure efficient receivables management. A consistent and optimal receivables turnover ratio is crucial for maintaining healthy cash flow and liquidity in the company.
Peer comparison
Sep 30, 2024