SJW Corporation (SJW)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	493,378	449,374	417,080	408,031	360,859
Payables	US$ in thousands	46,121	29,581	30,391	34,200	34,886
Payables turnover		10.70	15.19	13.72	11.93	10.34

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $493,378K ÷ $46,121K
= 10.70

The payables turnover ratio for SJW Group has shown a fluctuating trend over the past five years. In 2023, the payables turnover ratio decreased to 5.55 from 7.87 in 2022, indicating that the company took longer to pay its suppliers compared to the prior year. However, it is important to note that the payables turnover ratio in 2023 is still relatively higher than in 2020 and 2019.

Overall, the downward trend in the payables turnover ratio suggests that SJW Group may be taking longer to pay its suppliers, which could potentially strain the company's relationships with its vendors. It is crucial for the company to closely monitor its payables turnover and manage its accounts payable effectively to ensure efficient working capital management. The company may need to explore strategies to optimize its payment cycles and maintain favorable relationships with its suppliers.