Powell Industries Inc (POWL)
Receivables 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 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 | 517,010 | 503,556 | 490,106 |
| Receivables | US$ in thousands | 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 | 112,326 | 108,623 | 81,363 |
| 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 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $766,793K ÷ $169,541K
= 4.52
The receivables turnover ratio measures how efficiently a company is collecting its accounts receivable. A higher turnover ratio indicates a more efficient collection process.
Looking at Powell Industries, Inc.'s receivables turnover over the past eight quarters, we can see fluctuations in the ratio. In the latest quarter, ending December 31, 2023, the receivables turnover was 4.52, indicating an improvement in the collection of receivables compared to the previous quarter. However, compared to the same period in the prior year, the turnover has decreased.
The trend over the past year shows a peak in receivables turnover in the third quarter of 2022, followed by a significant decline in the fourth quarter of 2022. The ratio has shown some recovery in the first two quarters of 2023 before dropping again in the third quarter and then improving in the latest quarter.
This fluctuation may indicate inefficiencies in the company's accounts receivable management or changes in its customer base and payment terms. It is essential for the company to analyze the reasons behind these fluctuations and take appropriate measures to ensure a consistent and efficient collection process. Additionally, investors and creditors may closely monitor this ratio to assess the company's liquidity and credit risk.
Peer comparison
Dec 31, 2023