Powell Industries Inc (POWL)
Current ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| 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 |
| Current ratio | 1.57 | 1.99 | 2.50 | 2.19 | 2.08 |
September 30, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $621,985K ÷ $395,686K
= 1.57
The current ratio, which measures the company's ability to meet its short-term obligations with its current assets, has exhibited a declining trend over the past five years. In 2023, the current ratio stands at 1.57, indicating a decrease from the previous year's ratio of 1.99. This suggests that the company may have a lower ability to cover its short-term liabilities with its current assets compared to the prior year. Furthermore, the current ratio has decreased significantly from 2021, where it was 2.50, indicating a notable shift in the company's liquidity position. While the current ratio remains above 1, implying that Powell Industries, Inc. still possesses more current assets than current liabilities, the decreasing trend should be carefully monitored as it may reflect potential changes in the company's liquidity and ability to meet its short-term obligations.
Peer comparison
Sep 30, 2023