Powell Industries Inc (POWL)
Working capital 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 |
| Total current assets | US$ in thousands | 776,481 | 621,985 | 369,983 | 302,461 | 335,658 |
| Total current liabilities | US$ in thousands | 428,015 | 395,686 | 186,373 | 121,156 | 152,947 |
| Working capital turnover | 5.81 | 6.18 | 5.80 | 5.19 | 5.68 |
September 30, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,024,710K ÷ ($776,481K – $428,015K)
= 5.81
Powell Industries Inc's working capital turnover has fluctuated over the past five years, ranging from a low of 5.19 in 2021 to a high of 6.18 in 2023. The working capital turnover ratio reflects how efficiently the company is utilizing its working capital to generate sales revenue. A higher ratio indicates that the company is effectively managing its working capital to support its operations.
In the case of Powell Industries Inc, the trend in working capital turnover shows some variability but remains relatively stable over the years, with an average ratio of approximately 5.73. This suggests that the company has been maintaining a consistent level of efficiency in leveraging its working capital to generate sales. It is important for Powell Industries Inc to continue monitoring its working capital turnover ratio to ensure optimal utilization of its resources to support growth and profitability.
Peer comparison
Sep 30, 2024