Powell Industries Inc (POWL)
Working capital 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 current assets | US$ in thousands | 674,825 | 621,985 | 547,252 | 463,200 | 389,244 | 369,983 | 324,772 | 311,679 | 290,408 | 302,461 | 285,534 | 302,788 | 310,291 | 335,658 | 350,151 | 307,732 | 321,301 | 328,568 | 287,270 | 264,359 |
| Total current liabilities | US$ in thousands | 427,851 | 395,686 | 334,996 | 269,691 | 203,774 | 186,373 | 144,350 | 132,883 | 113,668 | 121,156 | 105,310 | 120,955 | 126,828 | 152,947 | 170,499 | 132,996 | 149,543 | 157,896 | 129,801 | 110,283 |
| Working capital turnover | 3.10 | 3.09 | 3.08 | 3.10 | 2.99 | 2.91 | 2.78 | 2.69 | 2.66 | 2.60 | 2.53 | 2.52 | 2.68 | 2.84 | 3.08 | 3.26 | 3.15 | 3.03 | 3.20 | 3.18 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $766,793K ÷ ($674,825K – $427,851K)
= 3.10
The working capital turnover of Powell Industries, Inc. has been steadily increasing over the past eight quarters, which indicates an improving efficiency in its management of working capital. The company's ability to utilize its working capital to generate sales has been on an upward trajectory, reaching 3.10 at the end of December 2023, compared to 2.68 at the end of March 2022. This signifies that for each dollar of working capital, Powell Industries is generating $3.10 in sales at the end of 2023, showing an increase in operational efficiency. The consistent improvement in working capital turnover reflects the company's effective utilization of its current assets and liabilities to support its sales growth and operational activities. This trend bodes well for the company's financial performance and indicates a positive management of its working capital.
Peer comparison
Dec 31, 2023