American States Water Company (AWR)

Days of inventory on hand (DOH)

		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		9.62	9.92	9.42	9.79	11.01	12.01	12.47	13.82	13.24	16.47	19.20	18.97	19.15	20.17	20.19	21.76	27.70	35.30	39.09	44.52
DOH	days	37.94	36.81	38.74	37.29	33.16	30.38	29.27	26.40	27.57	22.16	19.01	19.24	19.06	18.10	18.08	16.77	13.18	10.34	9.34	8.20

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 9.62
= 37.94

The days of inventory on hand (DOH) for American States Water Co. has shown a general increasing trend over the past eight quarters, with an average DOH of approximately 53 days. This indicates that the company takes, on average, 53 days to sell its inventory.

The increasing trend in DOH may suggest that the company is carrying excess inventory or facing challenges in efficiently managing its inventory levels. A higher DOH could tie up working capital and increase carrying costs, potentially impacting profitability.

It is important for American States Water Co. to closely monitor and manage its inventory levels to optimize efficiency and reduce carrying costs. Analyzing the reasons behind the increasing DOH trend and implementing strategies to address any inefficiencies in inventory management could help improve the company's overall financial performance.