American States Water Company (AWR)

Receivables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	595,699	491,528	498,853	488,243	473,869
Receivables	US$ in thousands	57,818	50,770	61,799	55,101	47,074
Receivables turnover		10.30	9.68	8.07	8.86	10.07

December 31, 2023 calculation

Receivables turnover = Revenue ÷ Receivables
= $595,699K ÷ $57,818K
= 10.30

The receivables turnover ratio measures how efficiently a company is able to collect cash from its customers. A higher receivables turnover ratio indicates that the company is collecting cash more quickly from its credit sales.

American States Water Co.'s receivables turnover has shown a decreasing trend over the past five years. In 2019, the company had a receivables turnover ratio of 6.51, which decreased to 5.80 in 2020, indicating a slight decline in the efficiency of collecting cash from customers. However, in 2021, the ratio decreased further to 5.19, suggesting a potential deterioration in the company's collection process.

The receivables turnover improved in 2022 to 5.46, but then decreased again in 2023 to 5.25. While the ratio fluctuated over the years, it generally remained above 5, indicating that American States Water Co. is still able to collect cash from its customers at a reasonable rate.

Overall, the downward trend in the receivables turnover ratio suggests that the company may need to review its credit policies and collection procedures to improve the efficiency of its accounts receivable management.