American States Water Company (AWR)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		10.80	12.41	14.86	21.30	27.14
DOH	days	33.79	29.42	24.55	17.14	13.45

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 10.80
= 33.79

The days of inventory on hand (DOH) for American States Water Co. have shown a consistent increasing trend over the past five years. The company's DOH has steadily risen from 25.30 days at the end of 2019 to 60.21 days at the end of 2023.

This indicates that American States Water Co. is taking longer to sell its inventory, which may suggest potential issues such as overstocking, slow-moving inventory, or inefficiencies in the supply chain.

A high DOH can tie up working capital and increase carrying costs associated with inventory. It can also indicate a potential risk of obsolescence or deteriorating value of inventory held by the company.

Management should closely monitor inventory levels and implement strategies to optimize inventory turnover to improve liquidity and profitability. Further analysis and investigation into the reasons behind the increasing DOH trend are warranted to address any underlying operational issues impacting inventory management at American States Water Co.