Powell Industries Inc (POWL)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 321,400 | 245,875 | 183,355 | 152,039 | 99,632 | 101,954 | 75,830 | 86,431 | 77,905 | 114,314 | 108,675 | 134,093 | 134,016 | 160,216 | 156,026 | 120,571 | 120,966 | 118,639 | 71,921 | 66,376 |
| Short-term investments | US$ in thousands | 33,943 | 33,134 | 26,414 | 11,085 | 11,070 | 14,554 | 22,682 | 27,143 | 23,622 | 19,667 | 20,165 | 19,852 | 15,694 | 18,705 | 7,330 | 0 | 0 | 6,042 | 6,109 | 5,991 |
| 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 |
| Cash ratio | 0.83 | 0.71 | 0.63 | 0.60 | 0.54 | 0.63 | 0.68 | 0.85 | 0.89 | 1.11 | 1.22 | 1.27 | 1.18 | 1.17 | 0.96 | 0.91 | 0.81 | 0.79 | 0.60 | 0.66 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($321,400K
+ $33,943K)
÷ $427,851K
= 0.83
The cash ratio of Powell Industries, Inc. has varied over the past eight quarters, ranging from 0.83 to 1.33. The cash ratio measures the company's ability to cover its short-term liabilities with its available cash and cash equivalents. A higher cash ratio indicates a stronger ability to cover short-term obligations.
The ratio has fluctuated, with a noticeable decrease in the cash ratio from the third quarter of 2022 to the second quarter of 2023, before showing a slight increase in the most recent quarter. This fluctuation suggests changes in the company's liquidity position during this period.
The cash ratio peaked at 1.33 in the first quarter of 2022, indicating a substantial liquidity position at that time. However, it decreased to 0.83 in the third quarter of 2023, which may raise concerns about the company's ability to cover short-term liabilities with its available cash.
Further analysis would be needed to understand the reasons behind these fluctuations and assess the impact on the company's overall financial health and liquidity management.
Peer comparison
Dec 31, 2023