American States Water Company (AWR)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 31.01 | 34.13 | 36.11 | 34.91 | 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 |
| Days of sales outstanding (DSO) | days | 40.58 | 29.42 | 25.13 | 18.52 | 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 |
| Number of days of payables | days | 181.48 | 159.42 | 153.15 | 149.70 | 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 |
| Cash conversion cycle | days | -109.88 | -95.87 | -91.91 | -96.27 | -74.95 | -106.22 | -106.96 | -98.90 | -121.54 | -103.63 | -110.34 | -105.39 | -76.60 | -100.81 | -102.39 | -90.61 | -80.83 | -67.57 | -73.22 | -62.12 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 31.01 + 40.58 – 181.48
= -109.88
The cash conversion cycle of American States Water Company has shown fluctuations over the past few years based on the provided data. The company's cash conversion cycle, which represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales, has generally been negative, indicating efficient management of working capital.
From March 2020 to December 2024, the cash conversion cycle has ranged from -62.12 days to -121.54 days. A negative cash conversion cycle typically suggests that the company is able to collect cash from customers before paying suppliers and converting inventory into sales, leading to a faster turnover of cash.
The company's lowest cash conversion cycle was observed in December 2022 at -121.54 days, indicating strong efficiency in managing working capital during that period. However, the cycle increased to -74.95 days by December 2023, showing a slight deterioration in working capital management efficiency.
Overall, the trend of the cash conversion cycle for American States Water Company has been generally negative, indicating a strong ability to efficiently manage its working capital and convert investments into cash inflows quickly. This efficiency can provide the company with additional liquidity and flexibility in its operations.
Peer comparison
Dec 31, 2024