California Water Service Group (CWT)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 14.90 | 12.97 | 12.25 | 13.47 | 15.14 | 17.93 | 16.29 | 15.59 | 14.47 | 12.71 | 12.39 | 12.22 | 11.31 | 11.08 | 11.33 | 11.00 | 10.58 | 10.35 | 10.23 | 10.20 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 14.90 | 12.97 | 12.25 | 13.47 | 15.14 | 17.93 | 16.29 | 15.59 | 14.47 | 12.71 | 12.39 | 12.22 | 11.31 | 11.08 | 11.33 | 11.00 | 10.58 | 10.35 | 10.23 | 10.20 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 14.90 + — – —
= 14.90
The cash conversion cycle of California Water Service Group has experienced fluctuations over the period from March 31, 2020, to December 31, 2024.
The company's cash conversion cycle, a measure of how long it takes for a company to convert its investments in inventory and other resources into cash flows from sales, started at 10.20 days on March 31, 2020. It remained relatively stable around this level until reaching a peak of 17.93 days on September 30, 2023. This significant increase in the cash conversion cycle may indicate challenges in managing working capital efficiently during that period.
However, the company managed to reduce its cash conversion cycle to 12.25 days by June 30, 2024, showing an improvement in its working capital management practices. The trend continued with a slight increase to 12.97 days by September 30, 2024, which was still lower than the peak in 2023.
Overall, the company's cash conversion cycle fluctuated over the period, indicating varying efficiency in managing its cash flow from operations. It is essential for the company to monitor and optimize its working capital management continuously to ensure operational efficiency and financial health.
Peer comparison
Dec 31, 2024