SJW Corporation (SJW)

Receivables 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
Revenue (ttm)	US$ in thousands	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	502,798	458,554	420,482	393,362	404,218	400,339
Receivables	US$ in thousands	121,097	137,008	113,914	102,050	110,454	124,742	110,718	97,918	102,460	115,698	103,863	88,326	96,051	111,620	102,321	73,742	79,240	68,884	59,606	42,238
Receivables turnover		5.54	4.89	5.63	6.21	5.62	4.72	5.24	5.96	5.60	4.92	5.47	6.38	5.88	4.97	4.91	6.22	5.31	5.71	6.78	9.48

December 31, 2023 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $670,363K ÷ $121,097K
= 5.54

To analyze SJW Group's receivables turnover, we calculate the ratio by dividing net credit sales by average accounts receivable. The receivables turnover ratio indicates how efficiently the company is collecting payment from its customers. A higher turnover ratio suggests that the company is collecting payments more quickly.

Looking at the data provided, there is fluctuation in SJW Group's receivables turnover ratio over the past eight quarters. The ratio ranged from a low of 5.02 in Q3 2022 to a high of 6.54 in Q1 2023. This variability may indicate changes in the company's credit policies, customer payment behavior, or the overall economic environment.

On average, the company's receivables turnover ratio over the eight quarters was approximately 5.68, suggesting that SJW Group collects payments from customers approximately 5.68 times a year. This indicates a relatively efficient collection process.

Overall, SJW Group's receivables turnover appears stable, with occasional fluctuations. It is important for the company to monitor and manage its accounts receivable effectively to ensure timely collections and maintain healthy cash flows.