Powell Industries Inc (POWL)
Solvency ratios
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.92 | 2.18 | 1.66 | 1.45 | 1.54 |
Based on the solvency ratios provided for Powell Industries Inc, we can see that the company has consistently maintained a debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio of 0.00 across the past five years. This indicates that the company has not relied on debt financing to fund its operations or growth.
However, the financial leverage ratio has fluctuated over the same period, with a peak of 2.18 in 2023 and a low of 1.45 in 2021. The financial leverage ratio measures the extent to which a company is using debt to finance its operations. A higher ratio signifies a higher proportion of debt in the company's capital structure.
Powell Industries Inc's decreasing financial leverage ratio from 2023 to 2021 suggests that the company has been reducing its reliance on debt financing relative to equity. This trend could indicate improved financial stability and reduced financial risk for the company. Overall, the consistently low debt-related ratios coupled with the decreasing trend in the financial leverage ratio reflect a strong solvency position for Powell Industries Inc.
Coverage ratios
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | — | — | 21.63 | 6.35 | 90.17 |
The interest coverage ratio measures a company's ability to meet its interest obligations on outstanding debt. Powell Industries Inc's interest coverage ratio has fluctuated over the past five years. In 2020, the ratio was notably high at 90.17, indicating a strong ability to cover interest expenses. However, in 2021, the ratio decreased to 6.35, indicating a significant decline in the company's ability to cover interest charges. This low ratio suggests that Powell Industries Inc may have had challenges meeting its interest obligations in 2021.
In 2022, the interest coverage ratio improved to 21.63, indicating a better ability to cover interest expenses compared to the previous year. This improvement suggests that Powell Industries Inc may have implemented strategies to strengthen its financial position and manage its debt more effectively.
Unfortunately, there is no data available for 2023 and 2024, making it difficult to assess the company's recent performance in terms of interest coverage. Without this information, it is challenging to determine the trend in Powell Industries Inc's ability to cover interest expenses. It would be essential for stakeholders to monitor future financial statements to assess the company's financial health and debt management capabilities.