California Water Service Group (CWT)
Payables 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 |
| Payables | US$ in thousands | 157,305 | 140,986 | 144,369 | 131,725 | 108,463 |
| Payables turnover | 2.36 | 2.57 | 2.47 | 2.65 | 2.99 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $371,386K ÷ $157,305K
= 2.36
The payables turnover ratio of California Water Service Group has been decreasing over the past five years, indicating a longer time taken by the company to pay off its accounts payable. This trend suggests that the company may be taking longer to settle its outstanding obligations to suppliers or vendors. A lower payables turnover ratio could potentially signal inefficiencies in managing accounts payable or a change in payment terms with suppliers. It is essential for the company to monitor this ratio closely to ensure effective working capital management and maintain good relationships with its suppliers.
Peer comparison
Dec 31, 2023