What is Powell Industries Return-on-Tangible-Asset?
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Powell Industries's annualizedNet Income for the quarter that ended in Dec. 2023 was $96.3 Mil. Powell Industries's average total tangible assets for the quarter that ended in Dec. 2023 was $778.8 Mil. Therefore, Powell Industries's annualized Return-on-Tangible-Asset for the quarter that ended in Dec. 2023 was 12.37%.
The historical rank and industry rank for Powell Industries's Return-on-Tangible-Asset or its related term are showing as below:
POWL'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -2.17 Med: 2.59 Max: 11.64
Current: 11.64
During the past 13 years, Powell Industries's highest Return-on-Tangible-Asset was 11.64%. The lowest was -2.17%. And the median was 2.59%.
POWL's Return-on-Tangible-Asset is ranked better than 88.1% of 3017
companies
in the Industrial Products industry
Industry Median: 3.88
vs POWL: 11.64
Powell Industries Return-on-Tangible-Asset Historical Data
The historical data trend for Powell Industries's Return-on-Tangible-Asset can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Powell Industries's Return-on-Tangible-Asset
For the Electrical Equipment & Parts subindustry, Powell Industries's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Powell Industries's Return-on-Tangible-Asset Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Powell Industries's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Powell Industries's Return-on-Tangible-Asset falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Dec. 2023) net income data.
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Powell Industries Return-on-Tangible-Asset Related Terms
Thank you for viewing the detailed overview of Powell Industries's Return-on-Tangible-Asset provided by GuruFocus.com. Please click on the following links to see related term pages.
Powell Industries (Powell Industries) Business Description
Powell Industries Inc is a United States-based company that develops, designs, manufactures, and services custom-engineered equipment and systems for electrical energy distribution, control, and monitoring. The company's principal products comprise integrated power control room substations, custom-engineered modules, electrical houses, traditional and arc-resistant distribution switchgear and control gear, and so on. These products are applied in oil and gas refining, offshore oil and gas production, petrochemical, pipeline, terminal, mining and metals, light-rail traction power, electric utility, pulp and paper, and other heavy industrial markets. The company generates the majority of its sales from the United States.
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