Powell Industries Inc (POWL)
Quick 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 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 | 118,639 | 71,921 | 66,376 |
| Short-term investments | US$ in thousands | 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 | 6,042 | 6,109 | 5,991 |
| Receivables | US$ in thousands | 169,541 | 206,691 | 204,669 | 170,297 | 151,459 | 106,216 | 103,313 | 90,895 | 79,695 | 78,465 | 72,541 | 72,217 | 77,440 | 70,424 | 97,517 | 90,600 | 101,039 | 112,326 | 108,623 | 81,363 |
| 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 |
| Quick ratio | 1.23 | 1.23 | 1.24 | 1.24 | 1.29 | 1.20 | 1.40 | 1.54 | 1.59 | 1.75 | 1.91 | 1.87 | 1.79 | 1.63 | 1.53 | 1.59 | 1.48 | 1.50 | 1.44 | 1.39 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($321,400K
+ $33,943K
+ $169,541K)
÷ $427,851K
= 1.23
The quick ratio of Powell Industries, Inc. has shown a declining trend over the past eight quarters. The quick ratio, which measures the company's ability to meet short-term liabilities with its most liquid assets, decreased from 2.02 in March 2022 to 1.41 in December 2023.
The general downward trend indicates a potential weakening of the company's ability to meet its short-term obligations using its readily available assets. This could raise concerns about liquidity management and the company's ability to cover immediate financial commitments.
Further analysis and comparison with industry benchmarks and competitors' quick ratios would provide a more comprehensive understanding of Powell Industries' liquidity position.
Peer comparison
Dec 31, 2023