Powell Industries Inc (POWL)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 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 | 328,568 | 287,270 | 264,359 |
| 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 |
| Current ratio | 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 | 2.08 | 2.21 | 2.40 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $674,825K ÷ $427,851K
= 1.58
The current ratio of Powell Industries, Inc. has shown a declining trend over the past eight quarters. As of December 31, 2023, the current ratio stood at 1.58, down from 1.91 in the same period of the previous year. This indicates that the company's ability to meet its short-term obligations with its current assets has weakened.
The trend suggests that the company may be experiencing challenges in managing its working capital efficiently or may have increased its short-term liabilities relative to its current assets. A declining current ratio can raise concerns about the company's liquidity and ability to cover its short-term obligations.
It is important for Powell Industries, Inc. to closely monitor and address the factors affecting its current ratio to ensure its short-term financial stability and ability to meet its obligations. Additionally, shareholders and potential investors may view this declining trend as a cause for further investigation into the company's financial health and management of working capital.
Peer comparison
Dec 31, 2023