Powell Industries Inc (POWL)
Return on total capital
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 178,773 | 62,520 | 7,224 | 1,296 | 20,558 |
| Long-term debt | US$ in thousands | — | — | 0 | 0 | 400 |
| Total stockholders’ equity | US$ in thousands | 483,073 | 345,026 | 297,206 | 301,223 | 306,626 |
| Return on total capital | 37.01% | 18.12% | 2.43% | 0.43% | 6.70% |
September 30, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $178,773K ÷ ($—K + $483,073K)
= 37.01%
Powell Industries Inc's return on total capital has exhibited significant variability over the past five years. The return on total capital has experienced an upward trend from 6.70% in 2020 to 37.01% in 2024, indicating an improvement in the company's ability to generate returns from its total invested capital. This suggests that the company is becoming more efficient in utilizing its capital resources to generate profits.
The substantial increase in return on total capital from 2020 to 2024 reflects a positive trajectory in Powell Industries Inc's operational performance and financial management. The company has successfully enhanced its profitability relative to its total capital base, implying effective allocation of resources and capital utilization efficiency.
The significant improvement in return on total capital over the years demonstrates Powell Industries Inc's ability to create value for its stakeholders and shareholders. This upward trend in return on total capital signifies a positive development in the company's overall financial performance and may indicate a strengthening competitive position within the industry.
Peer comparison
Sep 30, 2024