Powell Industries Inc (POWL)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 315,331 | 332,012 | 323,256 | 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 |
| Short-term investments | US$ in thousands | 43,061 | 42,033 | 42,083 | 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 |
| 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 |
| Cash ratio | 0.84 | 0.89 | 0.83 | 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 |
September 30, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($315,331K
+ $43,061K)
÷ $428,015K
= 0.84
The cash ratio of Powell Industries Inc has fluctuated over the past few quarters. As of September 30, 2024, the cash ratio stands at 0.84, indicating that the company has $0.84 of cash and cash equivalents for every $1 of current liabilities.
Compared to the previous quarters, the cash ratio has been relatively stable in the range of 0.60 to 0.89. It experienced a significant increase from March 31, 2023, to December 31, 2023, and reached a peak of 1.27 on March 31, 2021, before gradually declining.
A cash ratio above 1 implies that the company has more cash on hand than current liabilities, suggesting a strong liquidity position. Conversely, a cash ratio below 1 may indicate potential liquidity constraints if the company is unable to meet its short-term obligations solely with its existing cash and cash equivalents.
Overall, monitoring the cash ratio trend can provide insights into Powell Industries Inc's ability to cover its short-term obligations and manage its liquidity effectively.
Peer comparison
Sep 30, 2024