Powell Industries Inc (POWL)
Quick ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 315,331 | 245,875 | 101,954 | 114,314 | 160,216 |
| Short-term investments | US$ in thousands | 43,061 | 33,134 | 14,554 | 19,667 | 18,705 |
| Receivables | US$ in thousands | 214,466 | 206,691 | 106,216 | 78,465 | 70,424 |
| Total current liabilities | US$ in thousands | 428,015 | 395,686 | 186,373 | 121,156 | 152,947 |
| Quick ratio | 1.34 | 1.23 | 1.20 | 1.75 | 1.63 |
September 30, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($315,331K
+ $43,061K
+ $214,466K)
÷ $428,015K
= 1.34
The quick ratio of Powell Industries Inc has shown fluctuations over the past five years. In 2024, the quick ratio stands at 1.34, indicating that the company has $1.34 in liquid assets available to cover each $1 of current liabilities. This represents a slight improvement from the previous year's quick ratio of 1.23 in 2023, suggesting enhanced liquidity in the current period.
Comparing the 2024 quick ratio to 2022 and 2021, the company's liquidity position has also improved. In 2022, the quick ratio was 1.20, showing a notable increase to 1.75 in 2021, indicating a significant strengthening of the company's ability to meet short-term obligations with liquid assets.
However, in 2020, the quick ratio was 1.63, slightly higher than the current year's ratio. This may indicate a slightly decreased liquidity position in 2024 compared to 2020, suggesting a potential need for the company to closely monitor its liquidity management.
Overall, the trend in Powell Industries Inc's quick ratio suggests fluctuations in liquidity over the past five years, with the 2024 ratio indicating a moderate level of liquidity to cover short-term obligations, although slightly lower than the ratio in 2020. Further analysis of the company's current asset composition and management practices would provide additional insights into its liquidity position.
Peer comparison
Sep 30, 2024