American States Water Company (AWR)

Payables turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Cost of revenue (ttm)	US$ in thousands	178,181	175,603	171,542	169,660	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
Payables	US$ in thousands	88,591	76,700	71,979	69,584	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
Payables turnover		2.01	2.29	2.38	2.44	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

December 31, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $178,181K ÷ $88,591K
= 2.01

The payables turnover ratio for American States Water Company has shown some fluctuations over the years, ranging from a high of 3.67 in March 2020 to a low of 1.90 in December 2022. The ratio measures how efficiently the company pays its suppliers and creditors. A higher payables turnover ratio typically indicates that the company is managing its payables effectively and paying its debts in a timely manner.

In the latest period of December 31, 2024, the payables turnover ratio stood at 2.01, indicating that the company takes approximately 2.01 times a year to pay off its suppliers. This suggests that American States Water Company may be taking slightly longer to pay its payables compared to previous periods, which could potentially strain relationships with suppliers if not managed appropriately.

Overall, while the payables turnover ratio has fluctuated over time, it is essential for American States Water Company to strike a balance in managing its payables effectively to maintain good relationships with suppliers while also optimizing cash flow and liquidity.