California Water Service Group (CWT)

Receivables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	747,613	804,187	749,273	755,324	626,488
Receivables	US$ in thousands	112,779	109,151	111,997	98,425	119,349
Receivables turnover		6.63	7.37	6.69	7.67	5.25

December 31, 2023 calculation

Receivables turnover = Revenue ÷ Receivables
= $747,613K ÷ $112,779K
= 6.63

The receivables turnover ratio for California Water Service Group has shown some fluctuations over the past five years. It indicates how many times, on average, the company collects its accounts receivable during a specific period.

The trend in receivables turnover from 2019 to 2023 suggests that the company's ability to collect outstanding receivables efficiently has varied. In 2019, the ratio was relatively high at 5.99, indicating a quick turnover of receivables. However, this ratio decreased in 2020 and 2021 to 4.08 and 4.15, respectively, suggesting a slightly slower collection of receivables during these years.

The ratio improved in 2022 to 4.81 but declined again in 2023 to 4.49. These fluctuations may be influenced by various factors such as changes in the company's credit policies, customer payment behavior, or economic conditions affecting the company's clientele.

Overall, a higher receivables turnover ratio typically indicates a more efficient collection of accounts receivable, whereas a lower ratio may suggest slower collection or potential issues with collecting outstanding balances. It is essential for the company to closely monitor this ratio and assess factors impacting its receivables management to ensure effective cash flow and liquidity management.