Powell Industries Inc (POWL)
Return on total capital
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 62,520 | 7,224 | 1,296 | 20,558 | 12,564 |
| Long-term debt | US$ in thousands | — | 0 | 0 | 400 | 800 |
| Total stockholders’ equity | US$ in thousands | 345,026 | 297,206 | 301,223 | 306,626 | 299,153 |
| Return on total capital | 18.12% | 2.43% | 0.43% | 6.70% | 4.19% |
September 30, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $62,520K ÷ ($—K + $345,026K)
= 18.12%
Powell Industries, Inc.'s return on total capital has shown a significant improvement in the most recent fiscal year, reaching 18.12% as of September 30, 2023, compared to a low of 0.34% in 2021. This upward trend indicates a notable enhancement in the company's ability to generate profits from its total capital investments. The substantial increase in return on total capital may signify improved operational efficiency and effective capital utilization by the company, potentially leading to higher returns for its investors and stakeholders. This positive performance in return on total capital reflects positively on the company's overall financial strength and management effectiveness in generating returns from its invested capital. It could also indicate successful strategic decisions and improved productivity, ultimately contributing to shareholder value.
Peer comparison
Sep 30, 2023