Powell Industries Inc (POWL)
Interest coverage
| 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 |
| Interest expense (ttm) | US$ in thousands | 0 | 376 | 2,469 | 3,368 | 3,891 | 3,770 | 1,740 | 854 | 378 | 175 | 163 | 201 | 204 | 201 | 202 | 211 | 228 | 239 | 246 | 241 |
| Interest coverage | — | 405.48 | 47.28 | 25.92 | 16.07 | 11.43 | 12.86 | 14.76 | 19.24 | 4.71 | -8.05 | -13.61 | 6.35 | 9.72 | 30.76 | 80.33 | 90.17 | 100.70 | 109.91 | 78.18 |
September 30, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $178,773K ÷ $0K
= —
The interest coverage ratio for Powell Industries Inc has fluctuated over the past several quarters. The interest coverage ratio measures the company's ability to cover its interest payments on debt with its operating income. A higher ratio indicates a stronger ability to meet interest obligations.
From Sep 30, 2019, to Mar 31, 2020, the interest coverage ratio was consistently above 80, indicating a very strong ability to cover interest payments with operating income. However, from Jun 30, 2020, to Jun 30, 2022, the ratio dropped significantly, even becoming negative at one point (-8.05 on Jun 30, 2022). This suggests a deterioration in the company's ability to cover interest payments, possibly due to changes in operating income or increased debt levels.
In the more recent quarters, the interest coverage ratio has shown signs of improvement, with the ratio increasing from -13.61 on Dec 31, 2022, to 405.48 on Jun 30, 2024. This sharp increase indicates a significant recovery in the company's ability to cover interest expenses, likely driven by an improvement in operating performance or a reduction in debt levels.
Overall, Powell Industries Inc's interest coverage ratio has exhibited significant fluctuations, with periods of strength followed by periods of weakness. It will be important to continue monitoring this ratio to ensure the company maintains a healthy financial position and can meet its interest payment obligations effectively.
Peer comparison
Sep 30, 2024