Powell Industries Inc (POWL)
Financial leverage ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 928,180 | 868,983 | 849,618 | 807,949 | 752,242 | 671,098 | 587,096 | 513,672 | 493,380 | 451,804 | 439,705 | 423,800 | 436,192 | 421,961 | 440,748 | 448,310 | 472,278 | 487,198 | 446,597 | 466,451 |
| 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 |
| Financial leverage ratio | 1.92 | 1.99 | 2.16 | 2.21 | 2.18 | 2.07 | 1.92 | 1.72 | 1.66 | 1.53 | 1.50 | 1.43 | 1.45 | 1.39 | 1.44 | 1.46 | 1.54 | 1.60 | 1.49 | 1.55 |
September 30, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $928,180K ÷ $483,073K
= 1.92
The financial leverage ratio of Powell Industries Inc has shown fluctuation over the analyzed periods. The ratio peaked at 2.21 in December 2023, indicating a relatively high level of financial leverage at that time. Subsequently, the ratio fluctuated but generally decreased, reaching a low of 1.39 in March 2021. This downward trend suggests a reduction in the company's reliance on debt to finance its operations.
However, from March 2021 onwards, the financial leverage ratio gradually increased, indicating a potential increase in leverage and debt utilization by the company. The ratio stood at 1.92 as of September 2024, indicating a moderate level of financial leverage compared to the peak levels observed in 2023.
Overall, Powell Industries Inc's financial leverage ratio analysis suggests that the company has experienced varied levels of leverage over the analyzed periods, with a recent uptick in leverage. Further analysis of the company's capital structure and debt management strategies may provide additional insights into its financial health and risk profile.
Peer comparison
Sep 30, 2024