H2O America (HTO)

Payables turnover

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
Cost of revenue (ttm) US$ in thousands 341,296 331,308 323,323 312,619 297,500 287,333 281,929 273,579 265,149 263,558 263,524 259,470 257,275 258,297 255,114 256,284 252,047 247,944 247,950 244,641
Payables US$ in thousands 48,231 46,654 56,256 44,480 37,932 34,397 46,121 35,926 36,446 25,974 29,581 29,765 26,580 28,367 30,391 37,410 39,546 25,636 34,200 33,759
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

June 30, 2025 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $341,296K ÷ $48,231K
= 7.08

The payables turnover ratio of H2O America has exhibited notable fluctuations over the observed period from September 2020 to June 2025. Initially, the ratio remained stable at 7.25 in both September and December 2020. Moving into early 2021, there was an increase to 9.67 by March 2021, indicating a higher speed at which the company paid its suppliers.

Subsequently, the ratio dropped to 6.37 in June 2021, reflecting a slowdown in the payment process, before gradually rising again to 8.39 in December 2021 and reaching a peak of 10.15 in March 2023. The elevated ratios during this period suggest an improved efficiency in settling payables, possibly indicating better cash management, supplier terms, or a strategic change in payment policies.

Following the peak, the ratio declined to 7.28 in June 2023 and further to 7.62 by September 2023. The trend continued downward to 6.11 in December 2023, which could imply extended payment cycles or changes in working capital strategies. During the first half of 2024, there was a modest increase to 8.35 in March, but it subsequently decreased to 7.03 in September 2024, and further to 5.75 by December 2024, underscoring a potential shift towards longer payment periods.

In early 2025, the ratio stabilized around the 7.10 to 7.08 range in the first two quarters, reflecting a relatively balanced approach to settling supplier obligations. Overall, the company's payables turnover has fluctuated between approximately 5.75 and 10.15, indicating changing payment patterns that may be influenced by operational, strategic, or external factors affecting liquidity and supplier relationships.