American States Water Company (AWR)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	200,137	189,845	181,444	180,799	183,580
Inventory	US$ in thousands	15,140	17,574	14,623	12,163	8,619
Inventory turnover		13.22	10.80	12.41	14.86	21.30

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $200,137K ÷ $15,140K
= 13.22

American States Water Company's inventory turnover has shown a declining trend over the past five years, dropping from 21.30 in December 2020 to 13.22 in December 2024. This indicates that the company is taking longer to sell its inventory relative to the previous years. A higher inventory turnover ratio typically signifies efficient inventory management and faster sales cycles, while a lower ratio may suggest overstocking or slow-moving inventory. American States Water Company may need to reassess its inventory management strategies to improve efficiency and optimize working capital utilization.