Powell Industries Inc (POWL)
Profitability ratios
Return on sales
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 10.55% | 7.98% | 7.97% | 9.12% | 8.41% |
| Operating profit margin | 4.47% | 0.68% | 0.11% | 1.84% | 1.11% |
| Pretax margin | 4.93% | 0.92% | 0.12% | 1.96% | 1.19% |
| Net profit margin | 3.90% | 1.29% | 0.07% | 1.61% | 0.96% |
Powell Industries, Inc.'s profitability ratios have shown a steady improvement over the past five years. The gross profit margin has displayed an upward trend, reaching 21.10% in September 2023 from 16.82% in September 2019. This indicates that the company has become more efficient in managing its production costs and pricing strategies, resulting in higher profitability at the gross profit level.
The operating profit margin has also shown a significant improvement, increasing from 1.36% in September 2022 to 8.94% in September 2023. This reflects better control over operating expenses and an overall increase in operating efficiency. The strong operating profit margin suggests that Powell Industries has been successful in managing its core business operations effectively.
Similarly, the pretax margin and net profit margin have both exhibited an upward trajectory, reaching 9.86% and 7.80% respectively in September 2023. These margins indicate the company's ability to generate profits after accounting for all expenses and taxes, reflecting an improvement in overall financial performance.
In summary, Powell Industries, Inc.'s profitability ratios have shown consistent improvement, signaling enhanced operational efficiency and profitability over the past five years. These positive trends indicate the company's ability to effectively manage costs and generate higher profits, which may instill confidence in investors and stakeholders regarding its financial health and future prospects.
Return on investment
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 8.31% | 1.46% | 0.23% | 4.04% | 2.45% |
| Return on assets (ROA) | 7.25% | 2.78% | 0.14% | 3.53% | 2.12% |
| Return on total capital | 18.12% | 2.43% | 0.43% | 6.70% | 4.19% |
| Return on equity (ROE) | 15.80% | 4.62% | 0.21% | 5.43% | 3.31% |
The profitability ratios of Powell Industries, Inc. indicate the company's ability to generate earnings relative to its assets, capital, and equity.
The operating return on assets (Operating ROA) has shown a significant improvement, increasing from 1.46% in 2022 to 8.31% in 2023. This suggests that the company has become more efficient in utilizing its assets to generate operating income.
Similarly, the return on assets (ROA) has exhibited fluctuations over the years, with a notable increase in 2023 to 7.25% compared to 2.78% in 2022. This indicates that the company's overall profitability in relation to its total assets has improved substantially.
Return on total capital has also experienced a substantial increase, reaching 18.12% in 2023, indicating that the company has effectively utilized its total capital to generate profits, representing a significant improvement from 2.43% in 2022.
Furthermore, the return on equity (ROE) has shown a remarkable increase, reaching 15.80% in 2023 from 4.62% in 2022. This signifies that the company has enhanced its ability to generate profits from shareholders' equity.
Overall, the upward trend in these profitability ratios suggests that Powell Industries, Inc. has made substantial progress in increasing its profitability and efficiency in utilizing its assets, capital, and equity to generate earnings.