American States Water Company (AWR)

Payables turnover

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	169,090	160,805	158,505	159,359	160,964	161,526	163,976	165,095	161,015	168,698	168,439	166,045	165,031	175,456	164,887	159,796	178,079	214,998	241,932	262,322
Payables	US$ in thousands	68,705	71,829	70,678	65,705	84,849	69,982	71,929	67,490	65,902	67,952	65,951	57,360	63,788	53,644	51,771	43,516	55,616	59,771	55,645	53,205
Payables turnover		2.46	2.24	2.24	2.43	1.90	2.31	2.28	2.45	2.44	2.48	2.55	2.89	2.59	3.27	3.18	3.67	3.20	3.60	4.35	4.93

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $169,090K ÷ $68,705K
= 2.46

American States Water Co.'s payables turnover ratio has varied over recent quarters. In Q4 2023, the payables turnover stood at 1.55, indicating that the company pays its suppliers approximately 1.55 times during the quarter. This suggests a slight improvement compared to the previous quarter, Q3 2023, when the ratio was 1.46.

Looking at the trend, it is noteworthy that the payables turnover ratio has fluctuated over the past eight quarters, ranging from a low of 1.26 in Q4 2022 to a high of 1.65 in Q1 2022. This variability may indicate changes in the company's liquidity position, efficiency in managing supplier payments, or changes in purchasing patterns.

Overall, it is important for stakeholders to monitor this ratio closely as it provides insight into American States Water Co.'s ability to manage its trade payables effectively. An increasing trend in the payables turnover ratio may indicate improved liquidity and more efficient working capital management, while a decreasing trend could signal potential cash flow issues or strained relationships with suppliers.