Powell Industries Inc (POWL)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 752,242 | 493,380 | 436,192 | 472,278 | 467,411 |
| Operating ROA | 8.31% | 1.46% | 0.23% | 4.04% | 2.45% |
September 30, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $62,520K ÷ $752,242K
= 8.31%
The operating return on assets (operating ROA) for Powell Industries, Inc. has shown fluctuation over the past five years. In 2023, the operating ROA improved to 8.31% from 1.46% in 2022, indicating a significant increase in the company's operating efficiency in generating profits from its assets. This improvement suggests enhanced operational effectiveness or cost management.
Moreover, the 2023 operating ROA of 8.31% also outperformed the figure from 2020, when it stood at 4.33%. This indicates a positive trend in the company's ability to generate earnings from its assets over the last few years.
However, it's important to note that the operating ROA was significantly lower in 2021 and 2019, at 0.23% and 2.25% respectively. This suggests that the company faced challenges in effectively utilizing its assets to generate operating profits during those years.
Overall, the trend in operating ROA for Powell Industries, Inc. shows improvement, but it also highlights potential volatility in the company's operational performance over the past five years.
Peer comparison
Sep 30, 2023