Powell Industries Inc (POWL)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Current ratio | 1.81 | 1.76 | 1.62 | 1.58 | 1.57 | 1.63 | 1.72 | 1.91 | 1.99 | 2.25 | 2.35 | 2.55 | 2.50 | 2.71 | 2.50 | 2.45 | 2.19 | 2.05 | 2.31 | 2.15 |
September 30, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $776,481K ÷ $428,015K
= 1.81
The current ratio of Powell Industries Inc has shown fluctuations over the past several quarters, indicating shifts in the company's liquidity position. The current ratio measures the company's ability to cover its short-term liabilities with its current assets.
The current ratio has generally been above 1, which indicates that the company has had sufficient current assets to cover its current liabilities. The trend shows that the current ratio peaked at 2.71 in Mar 31, 2021, and has since fluctuated, with the latest ratio reported at 1.81 as of Sep 30, 2024.
A ratio above 1 is generally considered healthy, but a higher ratio indicates a better ability to cover short-term obligations. The decrease in the current ratio from its peak in Mar 31, 2021, may suggest a relative decrease in current assets or an increase in current liabilities since that period.
It is important for Powell Industries Inc to closely monitor its current ratio to ensure that it maintains a strong liquidity position and can meet its short-term obligations. Further analysis and investigation into the company's balance sheet composition and working capital management may help in understanding the factors contributing to the fluctuations in the current ratio.
Peer comparison
Sep 30, 2024