California Water Service Group (CWT)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 156.98 | 13.69 | 14.47 | 11.31 | 10.58 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 156.98 | 13.69 | 14.47 | 11.31 | 10.58 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 156.98 + — – —
= 156.98
The cash conversion cycle of California Water Service Group has shown fluctuations over the years based on the provided data. It increased from 10.58 days as of December 31, 2020, to 156.98 days as of December 31, 2024. This indicates a significant extension in the time it takes for the company to convert its investments in inventory and other resources into cash receipts from customers.
The trend reveals that there was a steady increase in the cash conversion cycle over the years, peaking in 2024. This may imply challenges in efficiently managing working capital and liquidity within the organization. It is important for the company to closely monitor and improve its cash conversion cycle to enhance its financial efficiency and sustainability in the long term.
Peer comparison
Dec 31, 2024