California Water Service Group (CWT)

Short-term

Turnover ratios

The activity ratios of California Water Service Group provide insights into the efficiency of the company's operations.

1. Inventory Turnover: The company's inventory turnover has gradually decreased over the years from 35.79 in March 2020 to 24.49 in December 2024. A decreasing trend indicates a longer time to sell inventory, which may lead to higher storage and holding costs.

2. Receivables Turnover: The data shows that receivables turnover information is not available for analysis. This may indicate that the company does not have significant accounts receivable or that the data is not disclosed.

3. Payables Turnover: Similar to receivables turnover, the information on payables turnover is not provided, making it challenging to assess how efficiently the company is managing its payables.

4. Working Capital Turnover: This ratio, which reflects how effectively working capital is being used to generate sales, shows fluctuations over time. Notably, there is a significant increase in September 2021 and December 2021, indicating improved efficiency in utilizing working capital to generate revenue. However, data is missing for multiple periods, limiting a comprehensive analysis of this metric.

In conclusion, while the inventory turnover provides some insights into the operational efficiency of California Water Service Group, the lack of data for receivables turnover, payables turnover, and incomplete information for working capital turnover hinders a complete evaluation of the company's activity ratios. It would be beneficial for the company to provide more detailed and consistent data to facilitate a more thorough analysis of its operational efficiency.

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Average number of days

Based on the provided data for California Water Service Group, let's analyze the activity ratios:

1. Days of Inventory on Hand (DOH):
- The DOH reflects the average number of days a company holds inventory before selling it.
- The trend for California Water Service Group shows an increase in DOH over the years, starting at 10.20 days on March 31, 2020, and reaching 14.90 days on December 31, 2024.
- This indicates that the company is holding onto inventory for a longer duration, which could tie up capital and increase storage costs.

2. Days of Sales Outstanding (DSO):
- The DSO measures the average number of days it takes for a company to collect revenue after a sale is made.
- The data provided only includes dashes ("—") for all periods, indicating that specific information on DSO is not available.
- Without DSO data, it is challenging to assess the efficiency of California Water Service Group in collecting receivables promptly.

3. Number of Days of Payables:
- The number of days of payables indicates how long a company takes to pay its suppliers.
- Similar to DSO, the data for the number of days of payables also shows dashes ("—") for all periods, which suggests that details regarding the company's payment cycle are not provided.
- Lack of information on payables makes it difficult to evaluate the company's ability to manage its cash flow effectively through payment terms.

In summary, while the data reveals an increasing trend in Days of Inventory on Hand for California Water Service Group, the absence of information on Days of Sales Outstanding and Number of Days of Payables inhibits a comprehensive assessment of the company's activity ratios related to inventory management, receivables collection, and payables administration.

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Long-term

The Fixed Asset Turnover ratio of California Water Service Group has shown a declining trend over the years, decreasing from 0.29 in March 2020 to 0.26 in March 2023. This ratio indicates that the company is generating less sales revenue per dollar of fixed assets invested.

In contrast, the Total Asset Turnover ratio has been relatively stable, fluctuating within a narrow range between 0.17 and 0.24 from December 2020 to March 2024. This ratio signifies that the company is efficiently utilizing its total assets to generate sales.

Overall, these long-term activity ratios suggest that California Water Service Group may be facing challenges in maximizing the productivity of its fixed assets, potentially indicating inefficiencies in asset utilization and management.