Powell Industries Inc (POWL)
Gross profit margin
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit (ttm) | US$ in thousands | 176,283 | 147,553 | 129,011 | 105,400 | 91,046 | 85,018 | 74,050 | 72,158 | 70,228 | 75,063 | 74,311 | 78,488 | 91,020 | 94,575 | 101,410 | 103,781 | 94,171 | 86,976 | 82,426 | 77,086 |
| Revenue (ttm) | US$ in thousands | 766,793 | 699,796 | 653,831 | 598,957 | 555,377 | 535,053 | 501,832 | 480,115 | 470,930 | 470,939 | 456,201 | 458,430 | 491,256 | 518,713 | 552,500 | 569,863 | 541,877 | 517,010 | 503,556 | 490,106 |
| Gross profit margin | 22.99% | 21.09% | 19.73% | 17.60% | 16.39% | 15.89% | 14.76% | 15.03% | 14.91% | 15.94% | 16.29% | 17.12% | 18.53% | 18.23% | 18.35% | 18.21% | 17.38% | 16.82% | 16.37% | 15.73% |
December 31, 2023 calculation
Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $176,283K ÷ $766,793K
= 22.99%
The gross profit margin of Powell Industries, Inc. has shown a positive trend over the past eight quarters, reflecting the company's ability to effectively manage its cost of goods sold and maintain strong pricing strategies. The margin has steadily increased from 15.04% in the first quarter of 2022 to 23.00% in the fourth quarter of 2023. This improvement indicates that the company has been able to generate higher profits from its sales revenue while effectively controlling its direct production costs.
The consistent upward trajectory of the gross profit margin suggests that Powell Industries has likely implemented efficient production processes, negotiated favorable pricing with suppliers, and effectively managed its inventory levels. This trend is also indicative of the company's ability to adapt to changing market conditions and enhance its competitiveness.
It is important to note that a rising gross profit margin generally indicates a healthier financial performance and can positively impact the company's overall profitability. However, continued scrutiny of operating expenses and other financial metrics is necessary to ensure sustained improvement in the company's financial position.
Peer comparison
Dec 31, 2023