Powell Industries Inc (POWL)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
Powell Industries Inc's solvency ratios paint a picture of a company that has been maintaining a strong financial position with minimal debt in relation to its assets, capital, and equity. The debt-to-assets, debt-to-capital, and debt-to-equity ratios have consistently shown zeros across all recent periods, indicating that the company has been operating with no significant debt burden.
The financial leverage ratio, on the other hand, has ranged from 1.39 to 2.21 over the past few periods. This ratio indicates the extent to which a company relies on debt to finance its operations. Powell Industries Inc's financial leverage ratio has fluctuated, but generally remained at moderate levels, with the highest ratio of 2.21 recorded in March 2024.
Overall, based on the solvency ratios, Powell Industries Inc appears to have a solid financial foundation with low debt levels and a balanced capital structure. This suggests that the company has been managing its financial obligations prudently and maintaining a healthy solvency position.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
Powell Industries Inc's interest coverage ratio has fluctuated significantly over the past several periods, indicating varying levels of financial stability in terms of covering interest expenses. The interest coverage ratio measures the company's ability to meet interest payments on its debt obligations using its operating income.
In the most recent period, the interest coverage ratio was not available, indicating possibly incomplete financial data. However, in the preceding periods, the interest coverage ranged from a low of -13.61 to a high of 405.48. Such extreme fluctuations suggest that Powell Industries experienced periods of both strong and weak financial performance in relation to its interest obligations.
The highest interest coverage ratio of 405.48 in June 2024 indicates that the company had a substantial operating income relative to its interest expenses during that period. This suggests a strong ability to service debt and indicates financial health.
Conversely, the negative interest coverage ratios in some periods, particularly in March 2022 and December 2021, raise concerns as they imply that the company's operating income was insufficient to cover its interest payments. Negative interest coverage ratios are a red flag for investors and creditors as they indicate financial distress.
Overall, Powell Industries Inc should aim to maintain a consistent and healthy interest coverage ratio above 1 to ensure the company can comfortably meet its interest obligations and avoid financial difficulties in the future.