American States Water Company (AWR)

Number of days of payables

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Payables turnover		2.76	2.14	2.74	2.88	3.14
Number of days of payables	days	132.09	170.69	133.04	126.83	116.33

December 31, 2023 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 2.76
= 132.09

The number of days of payables for American States Water Co. has fluctuated over the past five years. In 2023, the company took approximately 235.37 days to pay off its outstanding payables, which is a decrease from the previous year's 289.79 days. This may indicate that the company is managing its payables more efficiently in 2023.

Comparing to 2021 and 2020, where the number of days of payables were 221.84 days and 244.79 days respectively, it appears that the company's payment cycle in 2023 falls within the range of these values.

However, when compared to the benchmark year of 2019 when the company took approximately 218.88 days to settle its payables, the 2023 figure is slightly higher. This implies that the company may be taking a slightly longer time to pay off its suppliers in 2023 compared to 2019.

Overall, the trend in the number of days of payables suggests a slight improvement in efficiency in 2023 compared to 2022, but there is a slight deviation from the trend observed in prior years. Monitoring this ratio is essential to track the company's ability to manage its payables effectively.