California Water Service Group (CWT)

Inventory turnover

		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
Cost of revenue (ttm)	US$ in thousands	502,299	559,092	525,780	458,764	389,786	314,680	310,586	311,086	316,979	315,844	311,351	314,350	307,066	309,175	308,958	305,301	304,755	303,554	298,714	291,177
Inventory	US$ in thousands	20,511	19,872	17,645	16,934	16,170	15,454	13,862	13,287	12,564	10,994	10,567	10,526	9,511	9,383	9,589	9,201	8,831	8,611	8,375	8,135
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

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $502,299K ÷ $20,511K
= 24.49

The inventory turnover ratio for California Water Service Group has been gradually decreasing over the past few years, indicating that the company is taking longer to sell its inventory. The ratio peaked at 35.79 in March 2020 but has since declined to 24.49 by December 2024. This declining trend suggests potential inefficiencies in managing inventory levels or challenges in selling products in a timely manner. It is essential for the company to closely monitor its inventory turnover and work towards improving operational efficiency to ensure optimal inventory management and profitability.