Powell Industries Inc (POWL)
Receivables turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,012,356 | 945,934 | 850,294 | 766,793 | 699,796 | 653,831 | 598,957 | 555,377 | 535,053 | 501,832 | 480,115 | 470,930 | 470,939 | 456,201 | 458,430 | 491,256 | 518,713 | 552,500 | 569,863 | 541,877 |
| Receivables | US$ in thousands | 214,466 | 173,377 | 184,075 | 169,541 | 206,691 | 204,669 | 170,297 | 151,459 | 106,216 | 103,313 | 90,895 | 79,695 | 78,465 | 72,541 | 72,217 | 77,440 | 70,424 | 97,517 | 90,600 | 101,039 |
| 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 |
September 30, 2024 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $1,012,356K ÷ $214,466K
= 4.72
The receivables turnover ratio of Powell Industries Inc has fluctuated over the past several quarters, indicating variability in how efficiently the company is collecting its outstanding receivables. The ratio has ranged from a low of 3.19 to a high of 7.37, with an average turnover of approximately 5.33 times during this period.
A higher receivables turnover ratio generally indicates that the company is collecting its accounts receivable more quickly, which is a positive sign of good liquidity and effective credit policies. In contrast, a lower ratio may suggest potential issues with collecting receivables in a timely manner or potentially granting credit to customers that may not be creditworthy.
It's important for Powell Industries Inc to monitor and analyze the trend of receivables turnover over time to ensure the company is managing its accounts receivable effectively and maintaining a healthy cash flow position. By identifying the factors contributing to fluctuations in the receivables turnover ratio, the company can take appropriate actions to improve collections and overall financial performance.
Peer comparison
Sep 30, 2024