Powell Industries Inc (POWL)
Financial leverage ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 752,242 | 493,380 | 436,192 | 472,278 | 467,411 |
| Total stockholders’ equity | US$ in thousands | 345,026 | 297,206 | 301,223 | 306,626 | 299,153 |
| Financial leverage ratio | 2.18 | 1.66 | 1.45 | 1.54 | 1.56 |
September 30, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $752,242K ÷ $345,026K
= 2.18
The financial leverage ratio of Powell Industries, Inc. has exhibited a fluctuating trend over the past five years. The ratio increased from 1.56 in 2019 to 1.54 in 2020, before experiencing a sharp rise to 1.45 in 2021. Subsequently, there was a significant jump to 1.66 in 2022, followed by a notable surge to 2.18 in 2023. This pattern suggests that the company's reliance on debt financing has intensified considerably in recent years, potentially indicating an increase in financial risk and interest expenses. It is essential for stakeholders to closely monitor the company's capital structure and debt levels to assess their impact on profitability and solvency.
Peer comparison
Sep 30, 2023