American States Water Company (AWR)

Payables 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
Payables	US$ in thousands	88,591	68,705	84,849	65,902	63,788
Payables turnover		2.26	2.76	2.14	2.74	2.88

December 31, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $200,137K ÷ $88,591K
= 2.26

The payables turnover ratio for American States Water Company has shown some fluctuations over the period under consideration.

In 2020, the payables turnover was 2.88, indicating that the company took approximately 2.88 times to pay off its accounts payable during that year. The ratio then decreased slightly to 2.74 in 2021 before dropping more significantly to 2.14 in 2022, suggesting a longer payment period or possibly more efficient management of payables.

There was a recovery in the payables turnover ratio in 2023, reaching 2.76, which might indicate a return to a more optimal level of payable management. However, in 2024, the ratio declined again to 2.26, suggesting potential delays in payment to suppliers or changes in the company's payables management strategies during that year.

Overall, the trend in the payables turnover ratio for American States Water Company shows variability, reflecting changes in the company's payment practices and relationships with suppliers over the years. Further analysis and context about the company's operations and industry norms would be necessary to fully interpret the implications of these fluctuations.