Powell Industries Inc (POWL)
Total asset 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 |
| Total assets | US$ in thousands | 807,949 | 752,242 | 671,098 | 587,096 | 513,672 | 493,380 | 451,804 | 439,705 | 423,800 | 436,192 | 421,961 | 440,748 | 448,310 | 472,278 | 487,198 | 446,597 | 466,451 | 467,411 | 437,106 | 413,604 |
| 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 |
December 31, 2023 calculation
Total asset turnover = Revenue (ttm) ÷ Total assets
= $766,793K ÷ $807,949K
= 0.95
The total asset turnover ratio reveals Powell Industries, Inc.'s efficiency in generating revenue from its assets. Over the recent quarters, the company experienced a declining trend in total asset turnover, falling from 1.08 in the fourth quarter of 2022 to 0.95 in the fourth quarter of 2023. This indicates a decrease in revenue generated per dollar of assets.
The declining trend could be a cause for concern, as it may imply that the company is becoming less efficient in utilizing its assets to generate sales. Management should investigate the underlying reasons behind this trend, such as changes in the business model, asset management, or sales strategy, in order to address any inefficiencies and potential opportunities for improvement.
Additionally, it's important for stakeholders to monitor this ratio in the future to assess whether the declining trend persists or if there are any positive developments in the company's asset utilization.
Peer comparison
Dec 31, 2023