SJW Corporation (SJW)

Payables turnover

		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	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	493,378	482,159	464,132	454,398	449,374	432,466	424,784	426,094	417,080	417,341	414,300	406,463	408,031	418,474	403,217	385,975	360,859	335,646	336,820	330,513
Payables	US$ in thousands	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	24,295	25,214	34,886	28,193	28,253	22,819
Payables turnover		10.70	13.42	12.73	17.49	15.19	14.53	15.98	15.02	13.72	11.16	10.48	15.86	11.93	12.40	16.60	15.31	10.34	11.91	11.92	14.48

December 31, 2023 calculation

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

The payables turnover ratio for SJW Group has fluctuated over the past eight quarters, ranging from 5.55 to 8.99. In Q1 2023, the company had a significantly high payables turnover of 8.99, indicating that SJW Group paid off its accounts payable almost nine times during the quarter. This suggests a strong liquidity position and efficient management of its accounts payable.

However, the payables turnover ratio decreased in the subsequent quarters, reaching its lowest point of 5.55 in Q4 2023. This could imply that the company took longer to pay off its creditors during that period. Despite the fluctuations, SJW Group generally maintained a relatively healthy payables turnover ratio above 5, indicating efficient management of its accounts payable over the analyzed period.

It is important for stakeholders to continue monitoring the payables turnover ratio to assess the company's ability to effectively manage its accounts payable and maintain healthy liquidity levels.