Powell Industries Inc (POWL)
Return on total capital
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 178,773 | 152,461 | 116,725 | 87,310 | 62,520 | 43,078 | 22,375 | 12,604 | 7,274 | 824 | -1,312 | -2,735 | 1,296 | 1,953 | 6,214 | 16,949 | 20,558 | 24,068 | 27,039 | 18,842 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | 0 | — | — | 0 | 0 | 0 | 0 | 0 | 400 | 400 | 400 | 400 |
| Total stockholders’ equity | US$ in thousands | 483,073 | 436,739 | 393,785 | 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 |
| Return on total capital | 37.01% | 34.91% | 29.64% | 23.83% | 18.12% | 13.29% | 7.32% | 4.22% | 2.45% | 0.28% | -0.45% | -0.93% | 0.43% | 0.64% | 2.03% | 5.51% | 6.70% | 7.92% | 9.00% | 6.24% |
September 30, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $178,773K ÷ ($—K + $483,073K)
= 37.01%
The return on total capital for Powell Industries Inc has shown a generally increasing trend over the past five quarters, indicating the company's ability to generate profits from its invested capital. The ratio has improved from negative figures in the first two quarters of 2022 to a positive figure of 37.01% in the most recent quarter, Sep 30, 2024. This significant improvement suggests that the company is efficiently utilizing its total capital to create value for shareholders.
It is worth noting that the return on total capital fluctuated over the quarters, with some periods showing higher returns than others. However, the overall trend demonstrates an upward trajectory, indicating improving profitability and efficiency in capital allocation by Powell Industries Inc. This consistent improvement in return on total capital reflects positively on the company's financial performance and management's ability to deploy capital effectively to generate returns for investors.
Peer comparison
Sep 30, 2024