NewJersey Resources Corporation (NJR)

Days of inventory on hand (DOH)

		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
Inventory turnover		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	0.13	11.01	24.87
DOH	days	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	—	—	—	2,846.56	33.15	14.67

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 0.08
= 4,803.67

The Days of Inventory on Hand (DOH) ratio for New Jersey Resources Corporation has shown significant fluctuations over the past eight quarters. In Q1 2024, the company had 111.86 days of inventory on hand, indicating that it takes approximately 111.86 days to sell its current inventory. This is a substantial increase from the DOH of 85.09 days in Q4 2023 and a significant jump from previous quarters.

The trend in DOH suggests that the company may be carrying excess inventory, which could tie up its resources and potentially lead to increased holding costs. A high DOH could also indicate slow-moving inventory or lower demand for the company's products.

On the other hand, in Q2 2023, the company had a DOH of 24.03 days, which was relatively low compared to other quarters. This could suggest efficient inventory management practices, with the company quickly turning over its inventory and minimizing holding costs.

Overall, it is important for New Jersey Resources Corporation to closely monitor its inventory levels and strive to strike a balance between holding enough inventory to meet customer demand and avoiding excessive carrying costs. Regularly reviewing and optimizing inventory management practices can help improve operational efficiency and financial performance.