NewJersey Resources Corporation (NJR)

Days of inventory on hand (DOH)

		Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Inventory turnover		0.08	0.10	0.15	0.08	0.08	0.09	0.16	0.06	0.06	0.41	2.10	0.71	0.88	0.71	0.12	0.06	0.06	-9.47	-11.23	-2.55
DOH	days	4,768.38	3,502.92	2,380.26	4,803.67	4,857.58	3,974.41	2,331.86	5,959.41	6,381.11	883.40	173.47	513.58	415.77	514.82	2,939.99	5,663.07	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 fluctuated significantly over the periods analyzed.

From Mar 31, 2020, to Jun 30, 2021, the DOH ranged from 514.82 days to 6,381.11 days, indicating a wide variation in the company's inventory management efficiency during this period.

The trend shows that there was a significant improvement in inventory management efficiency from Jun 2021 to Mar 2022 as DOH decreased from 514.82 days to 173.47 days. However, this improvement was not sustained, and DOH increased again to 883.40 days by Jun 30, 2022.

The most recent data shows a sharp increase in DOH to 4,768.38 days as of Sep 30, 2024. This substantial increase may point to potential issues such as overstocking or slowing sales, which could impact the company's liquidity and profitability.

Overall, the fluctuating trend in DOH suggests that NewJersey Resources Corporation has experienced challenges in efficiently managing its inventory levels, and further analysis is warranted to assess the root causes and potential implications for the company's financial performance.