Powell Industries Inc (POWL)
Operating profit margin
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 62,520 | 7,224 | 1,019 | 19,071 | 11,461 |
| Revenue | US$ in thousands | 1,399,130 | 1,065,850 | 941,620 | 1,037,320 | 1,034,130 |
| Operating profit margin | 4.47% | 0.68% | 0.11% | 1.84% | 1.11% |
September 30, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $62,520K ÷ $1,399,130K
= 4.47%
The operating profit margin of Powell Industries, Inc. has shown varying trends over the past five years. In 2023, the operating profit margin significantly improved to 8.94%, marking a substantial increase from the previous year's 1.36%. This improvement indicates enhanced efficiency in managing operating expenses relative to revenue.
In 2021, the operating profit margin was just 0.22%, reflecting a narrow margin of profit generated from each dollar of sales. The company's performance in 2020 was relatively better at 3.95%, although it experienced a downturn compared to the 2019 margin of 2.03%.
These fluctuations in the operating profit margin suggest that Powell Industries, Inc. has experienced challenges in consistently controlling its operating costs in relation to revenue, with a notable improvement in performance in 2023. It will be important for the company to sustain this positive momentum and further enhance operational efficiency to drive profitability in the future.
Peer comparison
Sep 30, 2023