SJW Group Common Stock (SJW)

Cash conversion cycle

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Days of inventory on hand (DOH) days 13.51 15.56 17.81
Days of sales outstanding (DSO) days
Number of days of payables days
Cash conversion cycle days 0.00 0.00 13.51 15.56 17.81

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + — – —
= 0.00

The cash conversion cycle of SJW Group Common Stock has shown a decreasing trend over the years. As of December 31, 2020, the cash conversion cycle stood at 17.81 days, indicating that it took the company approximately 17.81 days to convert its investments in raw materials into cash from sales.

By December 31, 2021, the cash conversion cycle decreased to 15.56 days, suggesting an improvement in the efficiency of the company's working capital management. This trend continued into December 31, 2022, with the cash conversion cycle further reducing to 13.51 days.

Interestingly, by December 31, 2023, the cash conversion cycle was reported as 0.00 days, implying that the company was able to convert its investments into raw materials into cash immediately upon making sales. Similarly, this trend continued into December 31, 2024, where the cash conversion cycle was also reported as 0.00 days.

Overall, the decreasing trend in the cash conversion cycle signals that SJW Group Common Stock has been effective in managing its working capital, improving its operational efficiency, and potentially enhancing its cash flow generation capabilities.