California Water Service Group (CWT)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		22.97	28.82	37.47	39.57	41.81
DOH	days	15.89	12.66	9.74	9.23	8.73

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 22.97
= 15.89

The days of inventory on hand (DOH) for California Water Service Group have been exhibiting an increasing trend over the past five years, indicating a longer period required to sell or use up inventory. In 2019, the DOH was 11.59 days, but it has been steadily rising since then, reaching 21.90 days by the end of 2023.

This increase in DOH may suggest that California Water Service Group has been experiencing difficulties in managing its inventory levels efficiently. Higher inventory levels can tie up capital, increase storage costs, and risk potential obsolescence.

Given that a higher DOH typically implies that inventory is sitting idle for a longer period, it may be indicative of inefficiencies in the company's inventory management practices. Management should closely monitor and assess the reasons behind the increasing DOH to identify and address any underlying issues that may be impacting the company's working capital efficiency.