Powell Industries Inc (POWL)
Return on assets (ROA)
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 149,848 | 54,525 | 13,737 | 631 | 16,660 |
| Total assets | US$ in thousands | 928,180 | 752,242 | 493,380 | 436,192 | 472,278 |
| ROA | 16.14% | 7.25% | 2.78% | 0.14% | 3.53% |
September 30, 2024 calculation
ROA = Net income ÷ Total assets
= $149,848K ÷ $928,180K
= 16.14%
Powell Industries Inc has demonstrated a consistent improvement in its return on assets (ROA) over the past five years. The ROA has steadily increased from 3.53% in 2020 to 16.14% in 2024. This upward trend indicates that the company has been effectively utilizing its assets to generate profits.
The substantial increase in ROA from 2020 to 2021 suggests that Powell Industries Inc made significant improvements in asset efficiency and profitability during that period. The sharp rise in ROA continued in the subsequent years, indicating sustained performance and efficient asset management.
The significant improvement in ROA from 2022 to 2023 also highlights the company's ability to enhance its profitability relative to its assets. Powell Industries Inc's ROA of 16.14% in 2024 indicates that the company is generating $0.1614 in earnings for every dollar of assets employed.
Overall, the consistent increase in ROA reflects positively on Powell Industries Inc's financial performance and efficiency in utilizing its assets to generate profits over the past five years.
Peer comparison
Sep 30, 2024