Powell Industries Inc (POWL)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 483,073 | 345,026 | 297,206 | 301,223 | 306,626 |
| ROE | 31.02% | 15.80% | 4.62% | 0.21% | 5.43% |
September 30, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $149,848K ÷ $483,073K
= 31.02%
Powell Industries Inc's return on equity (ROE) has shown a positive trend over the past five years, indicating an improvement in the company's profitability and efficiency in generating returns for its shareholders.
The ROE increased from 5.43% in 2020 to 31.02% in 2024, reflecting significant growth in the company's ability to generate profits relative to shareholders' equity. This steady increase suggests that Powell Industries Inc has been effectively utilizing its equity capital to generate higher returns.
The substantial improvement in ROE from 2020 to 2024 may indicate successful management of the company's assets and liabilities, leading to higher net income and shareholder value. The ROE of 31.02% in 2024 indicates that for every dollar of equity invested by shareholders, the company generated a return of approximately 31.02 cents.
Overall, the trend in Powell Industries Inc's ROE demonstrates a positive performance and increasing profitability, potentially making it an attractive investment option for shareholders seeking a higher return on their investment.
Peer comparison
Sep 30, 2024