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