California Water Service Group (CWT)

Days of inventory on hand (DOH)

		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
Inventory turnover		24.49	28.13	29.80	27.09	24.11	20.36	22.41	23.41	25.23	28.73	29.46	29.86	32.29	32.95	32.22	33.18	34.51	35.25	35.67	35.79
DOH	days	14.90	12.97	12.25	13.47	15.14	17.93	16.29	15.59	14.47	12.71	12.39	12.22	11.31	11.08	11.33	11.00	10.58	10.35	10.23	10.20

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 24.49
= 14.90

Days of Inventory on Hand (DOH) is a key financial ratio that measures the average number of days a company holds inventory before selling it. In the case of California Water Service Group, the DOH has shown a fluctuating trend over the analyzed period, starting at around 10 days in 2020 and reaching a peak of 17.93 days in September 2023 before declining to 12.97 days in September 2024.

A consistently low DOH indicates that the company is efficiently managing its inventory, turning over goods quickly, and potentially reducing storage costs and inventory carrying costs. On the other hand, a high DOH may suggest overstocking, slow-moving inventory, or difficulties in matching inventory levels with customer demand.

In the case of California Water Service Group, the increasing trend in DOH from 2020 to 2023 followed by a more recent decline could indicate fluctuations in inventory management efficiency. The company may have faced challenges in optimizing inventory levels during certain periods but has made improvements more recently.

Further analysis and comparison with industry benchmarks or historical performance would provide additional insights into the effectiveness of California Water Service Group's inventory management practices and their impact on the overall financial performance and operational efficiency of the company.