California Water Service Group (CWT)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 2.33 | 26.67 | 25.23 | 32.29 | 34.51 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | — | — | 956.42 | 18.02 | — |
1. Inventory Turnover:
- California Water Service Group's inventory turnover has seen a steady decline from 34.51 in 2020 to 2.33 in 2024. This indicates a decrease in the company's efficiency in selling inventory over the years.
2. Receivables Turnover:
- There is no data provided for receivables turnover for the years 2020 to 2024, which makes it challenging to evaluate the efficiency of the company in collecting outstanding receivables.
3. Payables Turnover:
- Similar to receivables turnover, data for payables turnover is not available for the years 2020 to 2024, which would have helped in assessing how effectively the company manages its trade payables.
4. Working Capital Turnover:
- The working capital turnover ratio shows a significant increase from 18.02 in 2021 to 956.42 in 2022. This indicates that the company has been able to generate a higher level of revenue relative to its working capital investment in 2022. However, the lack of data for the years 2020, 2023, and 2024 limits a comprehensive analysis of this ratio over time.
Overall, the analysis of activity ratios for California Water Service Group highlights a decline in inventory turnover and limited data availability for receivables turnover, payables turnover, and working capital turnover, which may hinder a complete assessment of the company's operational efficiency.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 156.98 | 13.69 | 14.47 | 11.31 | 10.58 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
The activity ratios for California Water Service Group demonstrate the efficiency of the company in managing its inventory, sales, and payables.
1. Days of Inventory on Hand (DOH):
- The company's DOH has shown an increasing trend over the years, indicating that inventory is being held for a longer period before being sold.
- The significant spike in DOH from 13.69 days on December 31, 2023, to 156.98 days on December 31, 2024, raises concerns about potential inefficiencies or inventory management issues.
2. Days of Sales Outstanding (DSO):
- The absence of data for DSO suggests that the company may not have outstanding accounts receivable or may not be tracking this metric.
- Without information on DSO, it is challenging to assess how quickly the company is collecting payments from its customers.
3. Number of Days of Payables:
- Similar to DSO, no data is provided for the number of days of payables, making it difficult to evaluate how long the company takes to pay its suppliers.
- Monitoring payables turnover is crucial for managing cash flow and building relationships with suppliers.
In conclusion, while the information on DOH highlights a potential inventory management issue in 2024, the absence of data on DSO and payables limits a comprehensive analysis of California Water Service Group's activity ratios. Monitoring and improving these metrics can help enhance operational efficiency and working capital management.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 3.23 | 0.28 | 0.30 |
| Total asset turnover | 0.20 | 0.17 | 0.22 | 0.22 | 0.23 |
In analyzing California Water Service Group's long-term activity ratios, we can examine the fixed asset turnover and total asset turnover ratios over the years.
1. Fixed Asset Turnover:
- The fixed asset turnover ratio measures how efficiently the company is generating revenue from its fixed assets.
- In 2020, the fixed asset turnover ratio was 0.30, indicating that for every dollar invested in fixed assets, the company generated $0.30 in revenue.
- The ratio declined slightly to 0.28 in 2021, suggesting a decrease in the efficiency of utilizing fixed assets to generate revenue.
- A significant improvement was seen in 2022, with the fixed asset turnover ratio surging to 3.23, indicating a substantial increase in revenue generated from fixed assets within that year.
- Data for 2023 and 2024 is not available (indicated by "—"), making it challenging to assess the trend over those years.
2. Total Asset Turnover:
- The total asset turnover ratio measures how efficiently a company is utilizing all its assets to generate revenue.
- The ratio was consistent at 0.22 in both 2021 and 2022, indicating that the company generated $0.22 in revenue for every dollar of total assets held.
- A slight decline was observed in 2023, with the total asset turnover ratio dropping to 0.17, suggesting a decrease in revenue generation efficiency from total assets.
- The ratio rebounded in 2024 to 0.20, indicating a moderate improvement in utilizing total assets to generate revenue.
Overall, the fixed asset turnover ratio fluctuated over the years, with a significant increase in 2022, while the total asset turnover ratio remained relatively stable with slight fluctuations. The unavailability of data for 2023 and 2024 limits a comprehensive trend analysis for those years.