Powell Industries Inc (POWL)
Return on equity (ROE)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 77,448 | 54,525 | 36,828 | 27,435 | 17,745 | 13,737 | 8,259 | -2,843 | -1,851 | 631 | 353 | 5,875 | 13,521 | 16,660 | 20,215 | 21,823 | 15,360 | 9,890 | 4,891 | 103 |
| Total stockholders’ equity | US$ in thousands | 366,320 | 345,026 | 324,070 | 305,795 | 298,472 | 297,206 | 295,948 | 292,870 | 295,579 | 301,223 | 302,941 | 306,332 | 307,845 | 306,626 | 303,571 | 300,131 | 301,673 | 299,153 | 295,659 | 292,294 |
| ROE | 21.14% | 15.80% | 11.36% | 8.97% | 5.95% | 4.62% | 2.79% | -0.97% | -0.63% | 0.21% | 0.12% | 1.92% | 4.39% | 5.43% | 6.66% | 7.27% | 5.09% | 3.31% | 1.65% | 0.04% |
December 31, 2023 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $77,448K ÷ $366,320K
= 21.14%
The return on equity (ROE) for Powell Industries, Inc. has been exhibiting a positive trend over the past eight quarters, indicating an improvement in the company's profitability in relation to shareholders' equity. The ROE has been steadily increasing from -0.97% in March 2022 to 21.14% in December 2023.
The rising trend in ROE suggests that the company is utilizing its shareholders' equity more efficiently to generate profits. This improvement may be attributed to factors such as effective cost management, increased revenue, or enhanced operational efficiency.
Furthermore, the significant growth in ROE from negative territory to double-digit percentages implies that the company has been successful in turning around its profitability and enhancing its financial performance.
Overall, the consistent increase in ROE reflects positively on Powell Industries, Inc.'s ability to generate returns for its shareholders and indicates an improvement in the company's overall financial health and performance.
Peer comparison
Dec 31, 2023