Powell Industries Inc (POWL)
Working capital turnover
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,012,356 | 945,934 | 850,294 | 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 |
| Total current assets | US$ in thousands | 776,481 | 735,694 | 716,645 | 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 |
| Total current liabilities | US$ in thousands | 428,015 | 418,435 | 441,826 | 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 |
| Working capital turnover | 2.91 | 2.98 | 3.09 | 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 |
September 30, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,012,356K ÷ ($776,481K – $428,015K)
= 2.91
The working capital turnover for Powell Industries Inc has shown some fluctuations over the past few quarters, ranging from a low of 2.52 to a high of 3.15. The metric indicates how efficiently the company is utilizing its working capital to generate revenue.
The trend over the analyzed periods appears to be relatively stable, with some minor ups and downs. The company's ability to generate sales from its working capital has been consistently above 2.5 times for the past few years. Generally, a higher working capital turnover ratio is favorable as it suggests that the company is efficiently managing its working capital to support its operations.
Overall, Powell Industries Inc's working capital turnover ratio indicates that the company is effectively utilizing its current assets to support its sales activities. It is crucial for the company to maintain this efficiency in managing its working capital to sustain its operations and drive profitability in the long run.
Peer comparison
Sep 30, 2024