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.


Peer comparison

Dec 31, 2023