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Powell Industries (Powell Industries) Net-Net Working Capital : $6.33 (As of Dec. 2023)


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What is Powell Industries Net-Net Working Capital?

In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full. In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. This is a conservative way of estimating the company's value.

Powell Industries's Net-Net Working Capital for the quarter that ended in Dec. 2023 was $6.33.

The industry rank for Powell Industries's Net-Net Working Capital or its related term are showing as below:

POWL's Price-to-Net-Net-Working-Capital is ranked worse than
82.07% of 1361 companies
in the Industrial Products industry
Industry Median: 6.97 vs POWL: 23.11

Powell Industries Net-Net Working Capital Historical Data

The historical data trend for Powell Industries's Net-Net Working Capital 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.

* Premium members only.

Powell Industries Net-Net Working Capital Chart

Powell Industries Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Net-Net Working Capital
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.76 6.91 6.21 2.13 4.95

Powell Industries Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Net-Net Working Capital Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.09 3.27 4.15 4.95 6.33

Competitive Comparison of Powell Industries's Net-Net Working Capital

For the Electrical Equipment & Parts subindustry, Powell Industries's Price-to-Net-Net-Working-Capital, along with its competitors' market caps and Price-to-Net-Net-Working-Capital 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 Price-to-Net-Net-Working-Capital Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Powell Industries's Price-to-Net-Net-Working-Capital distribution charts can be found below:

* The bar in red indicates where Powell Industries's Price-to-Net-Net-Working-Capital falls into.



Powell Industries Net-Net Working Capital Calculation

Powell Industries's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Sep. 2023 is calculated as

Net-Net Working Capital(A: Sep. 2023 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(279.009+0.75 * 206.591+0.5 * 63.865-407.216
-0-0)/11.862
=4.95

Powell Industries's Net-Net Working Capital (NNWC) per share for the quarter that ended in Dec. 2023 is calculated as

Net-Net Working Capital(Q: Dec. 2023 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(355.343+0.75 * 169.477+0.5 * 69.682-441.629
-0-0)/11.9599
=6.33

* 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 calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full.

In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. In "Security Analysis", preferred stock is dubbed "an imperfect creditorship position" that is best placed on the balance sheet alongside funded debt.

This is a conservative way of estimating the company's value.


Powell Industries  (NAS:POWL) Net-Net Working Capital Explanation

One research study, covering the years 1970 through 1983 showed that portfolios picked at the beginning of each year, and held for one year, returned 29.4 percent, on average, over the 13-year period, compared to 11.5 percent for the S&P 500 Index. Other studies of Graham's strategy produced similar results.

Benjamin Graham looked for companies whose market values were less than two-thirds of their net-net value. They are collected under our Net-Net screener.


Powell Industries Net-Net Working Capital Related Terms

Thank you for viewing the detailed overview of Powell Industries's Net-Net Working Capital provided by GuruFocus.com. Please click on the following links to see related term pages.


Powell Industries (Powell Industries) Business Description

Traded in Other Exchanges
Address
8550 Mosley Road, Houston, TX, USA, 77075-1180
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.
Executives
Thomas W Powell director, officer: President, CEO
Milburn E Honeycutt officer: Vice President, Corp Controlle 7 AMBERSTONE DRIVE, SUGARLAND TX 77459
John David White director 8550 MOSLEY ROAD, HOUSTON TX 77075
Alaina K Brooks director 2501 CEDAR SPRINGS, SUITE 100, DALLAS TX 75201
John Stacey director C/O HARMAN INTERNATIONAL, 1101 PENNSYLVANIA AVE, NW #1010, WASHINGTON DC 20004
Katheryn Baucom Curtis director 8550 MOSLEY ROAD, HOUSTON TX 77075
Bonnie V Hancock director P O BOX 12818, HOUSTON TX 77075
Michael William Metcalf officer: Exec Vice President 8550 MOSLEY ROAD, HOUSTON TX 77075
James W Mcgill director 8550 MOSLEY ROAD, HOUSTON TX 77075
Perry L Elders director 8550 MOSLEY ROAD, HOUSTON TX 77075
Christopher E Cragg director
Richard E Williams director 8550 MOSLEY ROAD, HOUSTON X1 77075
William N. Clelland director, other: ADVISORY DIRECTOR 8550 MOSLEY ROAD, HOUSTON TX 77075
Brett Alan Cope officer: Sr VP, COO 8550 MOSLEY ROAD, HOUSTON TX 77075
Joseph L Becherer director PO BOX 12818, HOUSTON TX 77217