American Water Works (AWK)

Activity ratios

Short-term

Turnover ratios

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 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Inventory turnover 0.46 0.36 0.38 0.40 0.42 0.51 5.65 12.79 23.23 25.09 25.25 24.48 26.32 25.20 23.75 23.84 26.68 26.26 18.12 19.23
Receivables turnover 5.80 5.47 5.32 5.51 5.24 7.22 6.86 8.92 9.01 6.57 6.91 7.75 7.18 6.66 7.25 7.84 7.74 6.81 6.82 7.31
Payables turnover 0.18 0.18 0.17 0.21 0.16 0.21 2.45 5.19 5.63 7.60 8.99 9.50 6.54 7.62 7.17 7.84 5.78 8.11 6.21 6.51
Working capital turnover — 67.61 17.91 — — — — — — — — — — — — — — — — —

Inventory turnover for American Water Works Co. Inc. has consistently been at 0.00 in all quarters, indicating that the company does not hold significant inventory or faces challenges in selling its inventory efficiently.

Receivables turnover has shown a fluctuating trend, ranging from 5.73 to 7.47 in the past eight quarters. This suggests that the company's ability to collect payments from customers varies over time, with a peak in Q1 2022. Overall, the company is able to convert its accounts receivable into cash relatively well compared to its inventory turnover.

Payables turnover has remained at 0.00 in all quarters, suggesting that the company does not have a significant focus on paying its suppliers promptly or does not rely heavily on trade credit from suppliers.

Working capital turnover was noted in Q3 2023 as 67.75, indicating that the company may have efficiently utilized its working capital to generate revenue during that quarter. However, the absence of data in other quarters makes it challenging to assess the consistency of this performance.

In conclusion, American Water Works Co. Inc. demonstrates varying efficiencies in managing its activity ratios, with opportunities to improve inventory turnover and potentially stabilize receivables turnover.

Average number of days

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 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Days of inventory on hand (DOH) days 786.15 1,012.88 970.37 916.95 872.44 722.23 64.64 28.54 15.71 14.55 14.46 14.91 13.87 14.48 15.37 15.31 13.68 13.90 20.14 18.98
Days of sales outstanding (DSO) days 62.95 66.73 68.56 66.27 69.72 50.53 53.20 40.94 40.51 55.56 52.85 47.11 50.81 54.79 50.32 46.57 47.17 53.58 53.55 49.92
Number of days of payables days 2,063.65 2,080.50 2,190.00 1,718.17 2,261.22 1,708.51 149.04 70.35 64.78 48.03 40.59 38.42 55.77 47.88 50.94 46.54 63.11 45.02 58.74 56.09

Based on the provided data for American Water Works Co. Inc., we observe the following trends in the activity ratios:

1. Days of Inventory on Hand (DOH): The information for Days of Inventory on Hand is not available in the dataset for any of the quarters. This ratio typically indicates the average number of days it takes for a company to sell its inventory. Without this data, we cannot evaluate the efficiency of American Water Works Co. Inc. in managing its inventory levels.

2. Days of Sales Outstanding (DSO): The Days of Sales Outstanding for American Water Works Co. Inc. has varied over the quarters, ranging from a low of 48.87 days in Q1 2022 to a high of 63.70 days in Q2 2022. A decreasing DSO implies that the company is collecting payments from customers more quickly, while an increasing DSO could suggest delays in receivables collection.

3. Number of Days of Payables: The information for the Number of Days of Payables is not provided in the dataset for any of the quarters. This ratio typically reflects the average number of days a company takes to pay its suppliers. Without this data, we cannot assess how efficiently American Water Works Co. Inc. manages its payables.

In conclusion, while Days of Sales Outstanding (DSO) provides some insight into the efficiency of American Water Works Co. Inc. in collecting payments from customers, the absence of data for Days of Inventory on Hand and Number of Days of Payables limits a comprehensive analysis of the company's overall activity ratios.

Long-term

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 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Fixed asset turnover 0.17 0.17 0.17 0.16 0.16 0.20 0.21 0.22 0.22 0.19 0.19 0.19 0.19 0.19 0.19 0.20 0.20 0.20 0.20 0.20
Total asset turnover 0.14 0.14 0.14 0.14 0.14 0.17 0.17 0.18 0.18 0.15 0.16 0.16 0.15 0.15 0.15 0.15 0.16 0.16 0.16 0.16

American Water Works Co. Inc. has shown consistent performance in terms of its long-term activity ratios over the past eight quarters. The fixed asset turnover ratio has remained relatively stable around 0.17, indicating that the company is generating $0.17 in sales for every $1 invested in fixed assets. This suggests that the company is efficiently utilizing its fixed assets to generate revenue.

Similarly, the total asset turnover ratio has also been fairly consistent, hovering around 0.14. This ratio indicates that American Water Works is generating $0.14 in sales for every $1 of total assets. While the ratio has remained steady, it is slightly lower compared to fixed asset turnover, implying that the company may have a significant portion of its assets tied up in non-operating or non-productive assets.

Overall, based on the long-term activity ratios, American Water Works Co. Inc. appears to be effectively managing its assets to generate sales, with a focus on maintaining efficiency in utilizing its fixed assets for revenue generation.