H2O America (HTO)

Number of days of payables

Jun 30, 2025 Mar 31, 2025 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
Payables turnover 7.08 7.10 5.75 7.03 7.84 8.35 6.11 7.62 7.28 10.15 8.91 8.72 9.68 9.11 8.39 6.85 6.37 9.67 7.25 7.25
Number of days of payables days 51.58 51.40 63.51 51.93 46.54 43.69 59.71 47.93 50.17 35.97 40.97 41.87 37.71 40.09 43.48 53.28 57.27 37.74 50.34 50.37

June 30, 2025 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 7.08
= 51.58

The analysis of H2O America's number of days of payables over the specified periods indicates variability in its accounts payable management. Starting from approximately 50.37 days on September 30, 2020, the figure remained relatively stable through the end of 2020, with minimal fluctuation around the 50-day mark.

Throughout 2021, the days of payables showed some decline and fluctuation, reaching a low of approximately 43.48 days at the end of the year, and further decreasing to around 37.71 days by June 2022. This suggests an initial trend toward shorter payment cycles, potentially reflecting improved payment efficiency or a change in supplier terms.

However, the trend reversed post-2022, with the number of days increasing again, reaching approximately 50.17 days at the end of September 2023. Notably, a significant increase occurred towards the end of 2023, with payables extending to approximately 59.71 days, indicating that the company was taking longer to settle its liabilities. This upward trend persisted into early 2024, with the payables days reaching approximately 63.51 days in December 2024.

In the subsequent periods into 2025, the figure remained elevated at over 51 days, with slight variations, indicating a sustained period of extended payables.

Overall, H2O America has demonstrated periods of both shorter and extended payment cycles, with a clear shift toward lengthening the accounts payable period from mid-2023 onward. This change could be reflective of strategic decisions to optimize cash flow, negotiate extended credit terms with suppliers, or other operational factors influencing payment practices.