California Water Service Group (CWT)
Inventory turnover
Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
---|---|---|---|---|---|---|
Cost of revenue | US$ in thousands | 371,386 | 362,142 | 356,396 | 349,403 | 323,788 |
Inventory | US$ in thousands | 16,170 | 12,564 | 9,511 | 8,831 | 7,745 |
Inventory turnover | 22.97 | 28.82 | 37.47 | 39.57 | 41.81 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $371,386K ÷ $16,170K
= 22.97
The inventory turnover ratio for California Water Service Group has exhibited a decreasing trend over the past five years. In 2023, the inventory turnover was 16.67, which indicates that the company turned over its inventory approximately 16.67 times during the year. This represents a decline from 21.42 in 2022, 27.56 in 2021, 29.90 in 2020, and 31.48 in 2019.
A decreasing trend in inventory turnover may suggest that the company is holding onto its inventory for a longer period before selling it. This could tie up capital in inventory and potentially lead to obsolescence or inventory write-offs. It may also indicate inefficiencies in inventory management or production processes, which could impact the company's profitability.
Further analysis would be required to identify the specific reasons behind the declining inventory turnover and to determine the potential impact on the company's overall operations and financial performance.
Peer comparison
Dec 31, 2023