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