Powell Industries Inc (POWL)
Working capital turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,399,130 | 1,065,850 | 941,620 | 1,037,320 | 1,034,130 |
| Total current assets | US$ in thousands | 621,985 | 369,983 | 302,461 | 335,658 | 328,568 |
| Total current liabilities | US$ in thousands | 395,686 | 186,373 | 121,156 | 152,947 | 157,896 |
| Working capital turnover | 6.18 | 5.80 | 5.19 | 5.68 | 6.06 |
September 30, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,399,130K ÷ ($621,985K – $395,686K)
= 6.18
The working capital turnover ratio measures how effectively a company utilizes its working capital to generate sales revenue. It is calculated by dividing net sales by average working capital. Powell Industries, Inc.'s working capital turnover has shown a fluctuating trend over the past five years, with values ranging from 2.60 to 3.09.
In 2023, the working capital turnover ratio improved to 3.09, indicating that the company generated $3.09 in sales for every dollar of working capital. This suggests a more efficient utilization of working capital compared to the previous year. It is important to note that a higher turnover ratio generally signifies better liquidity management and operational efficiency. However, while the company's performance has improved in 2023, it is essential to analyze other financial ratios and factors to gain a holistic view of Powell Industries, Inc.'s financial health and performance.
Peer comparison
Sep 30, 2023