Powell Industries Inc (POWL)
Profitability ratios
Return on sales
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 13.49% | 10.55% | 7.98% | 7.97% | 9.12% |
| Operating profit margin | 8.83% | 4.47% | 0.68% | 0.11% | 1.84% |
| Pretax margin | 9.68% | 4.93% | 0.92% | 0.12% | 1.96% |
| Net profit margin | 7.40% | 3.90% | 1.29% | 0.07% | 1.61% |
Powell Industries Inc has shown improving profitability ratios over the past five years. The gross profit margin has been increasing steadily, indicating that the company has been able to improve its efficiency in generating profits from its cost of goods sold. The operating profit margin has shown significant improvement, suggesting better control over operating expenses and potentially higher revenue generation.
The pretax margin has also exhibited positive growth, indicating that the company is effectively managing its pre-tax earnings in relation to its total revenue. The net profit margin, which represents the company's bottom line profitability, has shown a consistent upward trend over the years, signifying improved profitability after accounting for all expenses and taxes.
Overall, the profitability ratios of Powell Industries Inc suggest that the company has been successful in enhancing its operational efficiency and controlling expenses, leading to stronger profitability levels. This trend is generally favorable and indicative of effective management strategies in place.
Return on investment
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 19.26% | 8.31% | 1.46% | 0.23% | 4.04% |
| Return on assets (ROA) | 16.14% | 7.25% | 2.78% | 0.14% | 3.53% |
| Return on total capital | 37.01% | 18.12% | 2.43% | 0.43% | 6.70% |
| Return on equity (ROE) | 31.02% | 15.80% | 4.62% | 0.21% | 5.43% |
Powell Industries Inc's profitability ratios have shown significant improvement over the past five years. The operating return on assets (Operating ROA) has increased steadily from 4.04% in 2020 to 19.26% in 2024, indicating that the company has been able to generate more operating income relative to its total assets.
Return on assets (ROA) has also displayed an upward trend, reaching 16.14% in 2024 from 3.53% in 2020. This metric considers overall profitability in relation to total assets, showcasing the company's efficiency in utilizing its assets to generate profits.
Return on total capital has experienced a substantial increase, climbing to 37.01% in 2024 from 6.70% in 2020. This metric reflects the company's ability to generate returns for both equity and debt holders, showcasing strong performance in utilizing all sources of capital efficiently.
Return on equity (ROE) has shown remarkable improvement, rising steadily from 5.43% in 2020 to 31.02% in 2024. This indicates the company's ability to generate higher returns for its shareholders over the years, reflecting strong management of equity investments.
Overall, Powell Industries Inc's profitability ratios demonstrate a positive trend, indicating improved profitability and efficiency in utilizing assets and capital to generate returns for both the company and its shareholders.