American States Water Company (AWR)

Activity ratios

Short-term

Turnover ratios

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
Inventory turnover 9.62 9.92 9.42 9.79 11.01 12.01 12.47 13.82 13.24 16.47 19.20 18.97 19.15 20.17 20.19 21.76 27.70 35.30 39.09 44.52
Receivables turnover 10.30 18.25 21.39 25.52 9.68 15.12 17.81 20.96 8.07 15.17 16.97 22.47 8.86 14.08 15.66 17.80 10.07 9.53 10.53 13.38
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
Working capital turnover 15.14 — 20.70 — — — — — — — 20.17 84.08 12.67 18.38 — — 73.38 37.39 29.44 48.53

The activity ratios of American States Water Co. indicate its efficiency in managing its resources.

1. Inventory turnover: This ratio has been relatively stable over the past eight quarters, averaging around 6.5 times. A decreasing trend in inventory turnover could suggest either overstocking or declining sales.

2. Receivables turnover: This ratio has shown some fluctuations but has generally remained above 5, indicating that the company is collecting its receivables efficiently. A higher ratio suggests faster collection of receivables, which is a positive sign for cash flow.

3. Payables turnover: The payables turnover ratio has exhibited some variability, but on average, the company takes around 1.5 times to pay its suppliers. A lower ratio could imply favorable credit terms with suppliers or potential liquidity constraints.

4. Working capital turnover: This ratio indicates how effectively the company manages its working capital to generate sales. The figures provided show significant variation, suggesting potential changes in the company's working capital management strategies.

Overall, American States Water Co. appears to have efficient inventory and receivables management based on its turnover ratios. However, there may be opportunities to improve payables management to optimize working capital turnover.

Average number of days

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
Days of inventory on hand (DOH) days 37.94 36.81 38.74 37.29 33.16 30.38 29.27 26.40 27.57 22.16 19.01 19.24 19.06 18.10 18.08 16.77 13.18 10.34 9.34 8.20
Days of sales outstanding (DSO) days 35.43 20.00 17.06 14.30 37.70 24.13 20.50 17.42 45.22 24.05 21.51 16.24 41.19 25.93 23.30 20.51 36.26 38.30 34.68 27.27
Number of days of payables days 148.31 163.04 162.75 150.49 192.40 158.14 160.11 149.21 149.39 147.02 142.91 126.09 141.08 111.60 114.60 99.40 113.99 101.47 83.95 74.03

To evaluate the activity ratios of American States Water Co., we consider days of inventory on hand (DOH), days of sales outstanding (DSO), and number of days of payables.

- Days of Inventory on Hand (DOH): The company took an average of around 56 to 60 days to sell its inventory during the most recent quarters. This indicates that American States Water Co. is managing its inventory efficiently, as fewer days of inventory on hand suggest a faster turnover rate.

- Days of Sales Outstanding (DSO): The average number of days it took the company to collect its accounts receivable ranged from around 59 to 70 days during the periods analyzed. Lower DSO values are generally more favorable as they indicate that the company is efficient in collecting payments from its customers.

- Number of Days of Payables: The company took an average of approximately 221 to 254 days to pay its suppliers during the most recent quarters. A higher number of days of payables could suggest that American States Water Co. is taking longer to settle its outstanding obligations to suppliers, which could be advantageous in terms of cash flow management.

In summary, American States Water Co. appears to be managing its inventory efficiently and collecting payments from customers in a timely manner. However, the company may need to assess its payment terms to suppliers to strike a balance between managing cash flow and maintaining good relationships with its vendors.

Long-term

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
Fixed asset turnover 0.31 0.32 0.32 0.31 0.28 0.28 0.29 0.30 0.31 0.32 0.32 0.32 0.32 0.32 0.33 0.34 0.33 0.34 0.34 0.33
Total asset turnover 0.27 0.27 0.27 0.26 0.24 0.24 0.25 0.26 0.26 0.27 0.27 0.28 0.27 0.28 0.28 0.29 0.29 0.29 0.29 0.29

American States Water Co.'s long-term activity ratios, as represented by the fixed asset turnover and total asset turnover, have remained relatively stable over the past eight quarters.

The fixed asset turnover ratio has ranged from 0.28 to 0.32, indicating that the company generates approximately $0.28 to $0.32 in revenue for every dollar invested in fixed assets. This suggests that the company may be efficiently utilizing its fixed assets to generate sales.

Similarly, the total asset turnover ratio has ranged from 0.24 to 0.27, demonstrating that the company generates around $0.24 to $0.27 in revenue for every dollar invested in total assets. This implies that American States Water Co. has been effectively utilizing its total assets to generate sales.

Overall, the stability in both ratios indicates that the company has been maintaining a consistent level of efficiency in utilizing its assets to generate revenue over the past two years. Further analysis and comparison with industry benchmarks may provide additional insights into the company's performance in relation to its peers.