Powell Industries Inc (POWL)
Gross profit margin
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 147,553 | 85,018 | 75,063 | 94,575 | 86,976 |
| Revenue | US$ in thousands | 1,399,130 | 1,065,850 | 941,620 | 1,037,320 | 1,034,130 |
| Gross profit margin | 10.55% | 7.98% | 7.97% | 9.12% | 8.41% |
September 30, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $147,553K ÷ $1,399,130K
= 10.55%
Based on the provided data, Powell Industries, Inc.'s gross profit margin has shown some variability over the past five years. The gross profit margin represents the proportion of revenue that exceeds the cost of goods sold, thus reflecting the efficiency of the company's production and pricing strategies.
The gross profit margin has exhibited an upward trend over the past three years, increasing from 15.95% in 2021 to 21.10% in 2023. This significant improvement indicates that Powell Industries has been able to effectively control its production costs relative to its revenue, resulting in a higher gross profit margin. This suggests enhanced operational efficiency, potentially through better inventory management, cost control, or product pricing strategies.
The increase in gross profit margin indicates that the company has been able to generate more profit from each dollar of sales. This is positive for the company's financial health and overall profitability. It is worth noting that the gross profit margin in 2020 was higher than in 2019, implying an improvement in the company's cost structure that year.
Overall, the upward trend in Powell Industries' gross profit margin suggests improving operational efficiency and stronger pricing strategies, which can positively impact its bottom line and overall financial performance. However, it would be beneficial to analyze the company's cost of goods sold and revenue trends in conjunction with the gross profit margin to gain a complete understanding of its financial performance.
Peer comparison
Sep 30, 2023