American States Water Company (AWR)

Working capital 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
Revenue (ttm)	US$ in thousands	595,699	595,886	579,174	544,381	491,528	482,785	484,556	490,363	498,853	506,429	503,362	496,226	488,243	477,036	477,844	481,213	473,869	471,881	461,567	443,821
Total current assets	US$ in thousands	205,978	191,685	168,910	139,690	151,294	138,790	138,970	130,856	138,052	143,659	136,312	118,912	157,115	139,407	137,026	127,405	122,456	132,469	122,025	116,776
Total current liabilities	US$ in thousands	166,623	195,007	140,930	307,690	396,522	373,179	348,736	160,154	155,574	151,120	111,351	113,010	118,572	113,456	158,687	132,520	115,998	119,847	106,346	107,630
Working capital turnover		15.14	—	20.70	—	—	—	—	—	—	—	20.17	84.08	12.67	18.38	—	—	73.38	37.39	29.44	48.53

December 31, 2023 calculation

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

The working capital turnover ratio is a measure of a company's efficiency in utilizing its working capital to generate sales revenue.

Based on the data provided, the working capital turnover for American States Water Co. was 15.14 in Q4 2023 and 20.70 in Q2 2023.

The significant increase in working capital turnover from Q4 2023 to Q2 2023 indicates an improvement in the company’s ability to generate sales relative to the level of working capital invested. This suggests that the company has become more efficient in managing its working capital.

However, the lack of data for Q1 2023 and historical data for comparison limits a more in-depth analysis. It would be beneficial to monitor the trend over consecutive quarters to assess the sustainability of this improved working capital turnover and to identify any potential seasonal or cyclical patterns affecting the ratio.