American States Water Company (AWR)
Inventory turnover
Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
---|---|---|---|---|---|---|
Cost of revenue | US$ in thousands | 189,845 | 181,444 | 180,799 | 183,580 | 174,506 |
Inventory | US$ in thousands | 17,574 | 14,623 | 12,163 | 8,619 | 6,429 |
Inventory turnover | 10.80 | 12.41 | 14.86 | 21.30 | 27.14 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $189,845K ÷ $17,574K
= 10.80
American States Water Co. has shown a declining trend in inventory turnover over the past five years. The inventory turnover ratio decreased from 14.43 in 2019 to 6.06 in 2023. This indicates that the company's efficiency in managing its inventory has decreased over the years.
A lower inventory turnover ratio suggests that American States Water Co. is holding onto its inventory for a longer period, which could lead to increased storage costs and potential obsolescence of inventory. It may also indicate inefficiencies in managing inventory levels or challenges in matching inventory with sales demand.
Overall, the decreasing inventory turnover ratio for American States Water Co. warrants further investigation into the company's inventory management practices to identify areas of improvement and enhance operational efficiency.
Peer comparison
Dec 31, 2023