American States Water Company (AWR)

Payables 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
Payables	US$ in thousands	68,705	84,849	65,902	63,788	55,616
Payables turnover		2.76	2.14	2.74	2.88	3.14

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $189,845K ÷ $68,705K
= 2.76

American States Water Co.'s payables turnover ratio has fluctuated over the past five years. The trend indicates variability in the company's efficiency in managing its accounts payable. In 2023, the payables turnover ratio increased to 1.55 from 1.26 in 2022, suggesting an improvement in the company's ability to pay off its suppliers. However, this ratio is lower compared to the ratios in 2021 and 2019, indicating that it took longer for the company to settle its payables in 2023. This could potentially signal a slower cash conversion cycle for the company in the most recent year. Further analysis of the company's payables management practices and vendor relationships may provide insights into the reasons behind these fluctuations.