American States Water Company (AWR)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		13.22	10.80	12.41	14.86	21.30
DOH	days	27.61	33.79	29.42	24.55	17.14

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 13.22
= 27.61

The days of inventory on hand (DOH) for American States Water Company has shown an increasing trend from 17.14 days as of December 31, 2020, to 27.61 days as of December 31, 2024. This indicates that, on average, the company is holding inventory for a longer period before it is sold or used in the operations. The DOH increased by approximately 7.41 days from 2020 to 2021, followed by a more significant increase of 4.87 days from 2021 to 2022, reaching a peak of 33.79 days as of December 31, 2023.

Subsequently, there was a slight decrease in DOH by 6.18 days from 2023 to 2024. A higher DOH could imply slower inventory turnover, potentially leading to increased carrying costs and the risk of obsolescence. It is essential for the company to monitor its inventory management practices to optimize working capital utilization and improve operational efficiency.