American States Water Company (AWR)

Working capital 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
Total current assets	US$ in thousands	205,978	151,294	138,052	157,115	122,456
Total current liabilities	US$ in thousands	166,623	396,522	155,574	118,572	115,998
Working capital turnover		15.14	—	—	12.67	73.38

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $595,699K ÷ ($205,978K – $166,623K)
= 15.14

The working capital turnover ratio for American States Water Co. has shown some fluctuations over the past five years, with significant variations between the years. In 2019, the company had a notably high working capital turnover of 73.38, indicating that it generated revenue well in excess of its working capital during that year. This could be attributed to efficient management of current assets in relation to current liabilities.

However, in 2020, the working capital turnover decreased to 12.67, suggesting a decline in the efficiency of converting working capital into revenue. This drop may indicate challenges in managing working capital efficiently or a decrease in revenue generation relative to the working capital employed during that period.

The data for 2021, 2022, and 2023 is not available, except for the figure of 15.14 in 2023. This latest figure is higher than the 2020 ratio, indicating an improvement in the efficiency of utilizing working capital to generate revenue in 2023 compared to 2020.

Overall, the trend in the working capital turnover ratio for American States Water Co. appears to be somewhat volatile, with substantial fluctuations observed over the years. It would be important to further analyze the components of working capital and revenue generation to understand the factors contributing to these fluctuations and assess the company's working capital management effectiveness in depth.