H2O America (HTO)

Receivables 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
Revenue (ttm)	US$ in thousands	788,737	766,656	748,439	721,957	701,737	682,449	670,363	670,399	641,537	633,692	620,698	589,061	580,003	583,203	573,686	569,649	568,589	563,557	564,526	554,664
Receivables	US$ in thousands	152,384	135,752	142,538	161,739	133,644	112,104	126,284	137,008	113,914	102,050	110,454	124,742	110,718	100,185	104,768	117,846	103,863	92,997	103,092	113,842
Receivables turnover		5.18	5.65	5.25	4.46	5.25	6.09	5.31	4.89	5.63	6.21	5.62	4.72	5.24	5.82	5.48	4.83	5.47	6.06	5.48	4.87

June 30, 2025 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $788,737K ÷ $152,384K
= 5.18

The receivables turnover ratios for H2O America over the analyzed period demonstrate notable fluctuations, reflecting variations in the company's efficiency in collecting its accounts receivable. Starting from a ratio of 4.87 as of September 30, 2020, the ratio experienced an upward trend, reaching its peak at 6.21 as of March 31, 2023. This increasing trend indicates periods where the company became more efficient in collecting receivables.

Throughout this period, the ratio showed intermittent declines; notably, it decreased to 4.72 as of September 30, 2022, and further dipped to 4.46 as of September 30, 2024. These declines suggest periods where collection efficiency may have slowed or credit policies became more lenient, possibly due to strategic changes or external economic factors.

The data also shows that post-peak in 2023, the ratio gradually declined toward September 2024 before slightly settling at 4.46. Despite this recent downturn, the ratio remains within a moderate range, indicating ongoing effectiveness in receivables management but also potential room for improvement.

Overall, the fluctuations in the receivables turnover ratio over time suggest that H2O America's collection efficiency has experienced periods of improvement and slowdown, likely influenced by internal policy adjustments and external economic conditions. Maintaining or enhancing collection practices could support more stable and higher turnover ratios moving forward.