H2O America (HTO)

Short-term

Turnover ratios

The activity ratio analysis for H2O America, based on the provided data, reveals the following insights:

1. Inventory Turnover: The inventory turnover ratio is consistently reported as missing across all periods, indicating the absence of data for this metric or potentially that inventory activity was not tracked or reported during the analyzed timeframe.

2. Receivables Turnover: The receivables turnover ratio exhibits a general trend of fluctuation, reflecting variability in the company's collection efficiency over time. Starting from 4.87 times as of September 30, 2020, it increased to 6.06 times by March 31, 2021, indicating an improvement in receivables collection. After a slight decline to 4.83 times by September 30, 2021, it shows a recovery to 6.21 times in March 2023, suggesting enhanced collection efforts or changing customer credit terms. However, the ratio decreases again to approximately 4.46 times in September 2024 before slightly rising to 5.65 times by March 2025, indicating ongoing variability but generally maintaining moderate efficiency in receivables management.

3. Payables Turnover: The payables turnover ratio demonstrates notable fluctuations. Initially at 7.25 times in September and December 2020, it surged significantly to 9.67 times in March 2021, then declined to 6.37 times by June 2021. The ratio increased again to over 9.68 times in June 2022, implying faster payments to suppliers during that period. Subsequently, it experienced a decreasing trend, reaching as low as 5.75 times in December 2024 before rebounding to approximately 7.10 in June 2025. These shifts suggest variability in the company's payment practices or supplier credit terms over time.

4. Working Capital Turnover: Data for working capital turnover is entirely missing across all periods, indicating that this metric has not been calculated or reported, and therefore no analysis of the company's efficiency in using its working capital can be conducted.

Overall, the activity ratios indicate that H2O America's receivables and payables management have experienced periods of improvement and decline, reflecting possible strategic adjustments or external factors impacting customer collections and supplier payments. The absence of inventory turnover and working capital turnover data limits the comprehensiveness of the activity ratio analysis, but the available ratios suggest a company with variable efficiency in managing its receivables and payables over the examined timeframe.

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Average number of days

The activity ratios of H2O America, as reflected in the provided data, reveal several key insights into the company's operational efficiency over the specified period. Notably, the Days of Inventory on Hand (DOH) data are consistently unavailable, indicating that inventory levels may not be a significant component or are not regularly reported within this dataset.

The Days of Sales Outstanding (DSO) demonstrates variability, with a general trend of fluctuation over time. Initially, the DSO decreased from 74.91 days as of September 30, 2020, to a low of 58.78 days on March 31, 2023. This decline suggests improved receivables collection efficiency during this period. However, the DSO then increased again, reaching 81.77 days by September 30, 2024, indicating a potential slowdown in receivables collection or extended credit terms, which could impact cash flow.

Regarding accounts payable, the Number of Days of Payables shows a decreasing trend from 50.37 days on September 30, 2020, to a low of 35.97 days on March 31, 2023. This indicates that the company has been paying its suppliers more promptly over this period. Subsequently, the payable days increased again, reaching 63.51 days as of December 31, 2024, potentially reflecting changes in payment strategies, supplier negotiations, or cash management practices.

In summary, H2O America's activity ratios suggest a period of improving receivables collection efficiency from late 2020 through early 2023, followed by a reversal with extended collection times. Simultaneously, the company's accounts payable management improved until early 2023, after which payment periods lengthened again. These trends could impact the company's liquidity position and warrant further analysis of accompanying financial statements to assess the underlying causes and implications.

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Long-term

The analysis of H2O America’s long-term activity ratios reveals notable trends and characteristics over the reporting periods. Specifically, the fixed asset turnover ratio data indicates an absence of reported values across all periods, suggesting either non-compliance with the reporting of this ratio or that fixed assets constitute an insignificant component for the company’s operations within the analyzed timeframe.

In contrast, the total asset turnover ratio demonstrates relatively stable performance over the observed periods, with values predominantly oscillating around 0.16 to 0.17. Throughout the period from September 2020 to June 2025, the ratio remained fairly consistent, reflecting a steady level of efficiency in utilizing total assets to generate revenue. The lowest recorded value was 0.15 in December 2023, while the highest was 0.17, indicating limited variation and a stable operational efficiency.

This stability suggests that H2O America maintains a consistent approach to asset utilization, without significant fluctuations that might imply recent operational restructuring or asset base changes impacting overall productivity. The absence of fixed asset turnover data could point to minimal investment or turnover activity in fixed assets, or possibly a strategic focus elsewhere in the asset base.

Overall, the long-term activity ratios portray a picture of steady, predictable asset utilization efficiency, with negligible changes over multiple fiscal periods, reinforcing the perception of stable operational conditions despite the lack of detailed fixed asset turnover information.