California Water Service Group (CWT)

Payables turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	371,386	367,894	367,006	364,717	362,142	362,984	360,368	359,438	356,396	356,413	354,909	350,092	349,403	327,387	325,250	324,058	323,475	314,304	313,726	312,362
Payables	US$ in thousands	157,305	152,869	138,272	120,198	140,986	157,911	139,732	140,832	144,369	148,415	132,972	120,549	131,725	127,158	128,216	99,019	108,463	108,593	97,376	83,280
Payables turnover		2.36	2.41	2.65	3.03	2.57	2.30	2.58	2.55	2.47	2.40	2.67	2.90	2.65	2.57	2.54	3.27	2.98	2.89	3.22	3.75

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $371,386K ÷ $157,305K
= 2.36

The payables turnover ratio measures how efficiently California Water Service Group is managing its accounts payable. A higher ratio indicates that the company is paying its suppliers more quickly.

Looking at the data, we can see fluctuations in the payables turnover ratio over the past eight quarters. In Q4 2023, the ratio decreased to 1.71 compared to the previous quarter at 1.74. This suggests that the company took longer to pay its suppliers in Q4 compared to Q3. However, it's still important to note that a payables turnover ratio of 1.71 is relatively healthy, indicating that California Water Service Group is managing its payables effectively.

Comparing the most recent quarter to the same period last year, we see a slight decrease in the payables turnover ratio from 1.91 in Q4 2022 to 1.71 in Q4 2023. This could indicate that the company is taking longer to pay its suppliers compared to the previous year.

Overall, while there have been fluctuations in the payables turnover ratio, California Water Service Group's ratio has generally been within a reasonable range, suggesting that the company is effectively managing its accounts payable turnover.