California Water Service Group (CWT)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	47,690	431,255	316,979	307,066	304,755
Inventory	US$ in thousands	20,511	16,170	12,564	9,511	8,831
Inventory turnover		2.33	26.67	25.23	32.29	34.51

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $47,690K ÷ $20,511K
= 2.33

The inventory turnover ratio for California Water Service Group has exhibited fluctuations over the years.

- In December 2020, the inventory turnover stood at 34.51, indicating that the company was able to sell and replace its inventory 34.51 times during the year.

- The ratio decreased to 32.29 by December 2021, suggesting a slight decrease in the efficiency of inventory management.

- A more pronounced decline was observed by December 2022, with the ratio dropping to 25.23. This could imply that the company took longer to turn over its inventory during this period.

- The ratio increased slightly to 26.67 by December 2023, but it was still below the levels seen in previous years.

- The most significant drop occurred by December 2024, with the inventory turnover ratio dropping drastically to 2.33. This sharp decline could indicate potential issues in managing or selling inventory efficiently.

Overall, the trend in the inventory turnover ratio for California Water Service Group shows variability, with some years demonstrating better efficiency in managing inventory turnover than others. It is crucial for the company to monitor and address any factors impacting inventory turnover to ensure optimal operational performance.