NewJersey Resources Corporation (NJR)

Days of inventory on hand (DOH)

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Inventory turnover		0.08	0.08	0.06	0.48	0.06
DOH	days	4,768.38	4,857.58	6,381.11	756.76	5,916.26

September 30, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 0.08
= 4,768.38

The days of inventory on hand (DOH) for NewJersey Resources Corporation have shown fluctuating trends over the past five years. In particular, the DOH ratio was notably high in September 2022 at 6,381.11 days, indicating the company held a significant amount of inventory relative to its sales level. This could suggest inefficiencies in inventory management or potential overstocking issues during that period.

Conversely, the DOH ratio dropped substantially in September 2021 to 756.76 days, reflecting a sharp decrease in the number of days it took for the company to sell its inventory. This could be a positive sign of improved inventory turnover and more effective inventory management practices during that year.

However, the DOH ratio increased again in September 2023 to 4,857.58 days, indicating a reversal in the positive trend observed in the previous year. This rise suggests that the company may have faced challenges in managing its inventory efficiently or experienced slower sales turnover during that period.

In the most recent year, September 2024, the DOH ratio was reported at 4,768.38 days, showing a slight improvement compared to the previous year but remaining at a relatively high level. This suggests that NewJersey Resources Corporation continues to hold inventory for an extended period, potentially impacting its cash flow and working capital management.

Overall, the fluctuating trend in the days of inventory on hand for NewJersey Resources Corporation highlights the company's inventory management challenges and the importance of closely monitoring and optimizing inventory levels to improve efficiency and financial performance.