American States Water Company (AWR)

Inventory turnover

		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
Cost of revenue (ttm)	US$ in thousands	169,090	160,805	158,505	159,359	160,964	161,526	163,976	165,095	161,015	168,698	168,439	166,045	165,031	175,456	164,887	159,796	178,079	214,998	241,932	262,322
Inventory	US$ in thousands	17,574	16,218	16,822	16,282	14,623	13,444	13,151	11,943	12,163	10,240	8,773	8,751	8,619	8,699	8,168	7,343	6,429	6,090	6,189	5,892
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

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $169,090K ÷ $17,574K
= 9.62

The inventory turnover ratio for American States Water Co. has shown a declining trend over the past four quarters. In Q4 2023, the inventory turnover ratio was 6.06, which was lower than the previous quarter at 6.48. This downward trend indicates that the company is taking longer to sell its inventory compared to previous periods.

Furthermore, comparing the current inventory turnover ratio to the same quarter a year ago, we observe a significant decrease from 7.31 in Q4 2022 to 6.06 in Q4 2023. This decline suggests that American States Water Co. is facing challenges in managing and liquidating its inventory efficiently.

Overall, the decreasing trend in inventory turnover may signal potential issues such as excess inventory levels, slower sales, or inefficiencies in inventory management. It is crucial for the company to closely monitor and improve its inventory turnover to maintain healthy working capital and profitability.