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.