California Water Service Group (CWT)

Days of inventory on hand (DOH)

		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
Inventory turnover		22.97	23.81	26.48	27.45	28.82	33.02	34.10	34.15	37.47	37.98	37.01	38.05	39.57	38.02	38.84	39.84	41.77	40.27	44.89	48.47
DOH	days	15.89	15.33	13.79	13.30	12.66	11.06	10.70	10.69	9.74	9.61	9.86	9.59	9.23	9.60	9.40	9.16	8.74	9.06	8.13	7.53

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 has shown a consistent upward trend over the past eight quarters, increasing from 14.29 days in Q1 2022 to 21.90 days in Q4 2023. This indicates that the company is holding inventory for a longer period before it is sold or used in operations.

A higher DOH can suggest potential inefficiencies in inventory management, leading to higher carrying costs and potentially obsolete inventory issues. It could also indicate slower inventory turnover, which may tie up company resources and impact cash flow.

It is important for California Water Service Group to closely monitor its inventory levels and take steps to optimize inventory turnover to improve efficiency and profitability. Further analysis of the reasons behind the increasing trend in DOH, such as changes in demand patterns, supply chain disruptions, or procurement processes, may provide valuable insights for inventory management strategies.