NewJersey Resources Corporation (NJR)

Days of sales outstanding (DSO)

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Receivables turnover		20.13	25.32	20.84	17.07	21.97
DSO	days	18.14	14.41	17.51	21.38	16.61

September 30, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 20.13
= 18.14

To analyze NewJersey Resources Corporation's Days of Sales Outstanding (DSO) based on the provided data, we observe a fluctuating trend over the past five years. DSO represents the average number of days it takes for a company to collect revenue after a sale is made.

In 2024, the DSO increased to 18.14 days from 14.41 days in 2023, indicating that the company took longer to collect its outstanding sales revenues. This could suggest potential difficulties in collecting payments from its customers or a change in the company's credit policies.

Comparing 2024 to 2022, the DSO increased marginally from 17.51 days to 18.14 days, indicating a slight deterioration in the collection efficiency. However, looking back to 2021, the DSO was significantly higher at 21.38 days, suggesting a positive improvement in 2024.

In 2020, the DSO was 16.61 days, and over the subsequent years, there have been fluctuations in the collection period, with a notable peak in 2021 and a relatively lower DSO in 2023. It is essential for NewJersey Resources Corporation to keep monitoring and managing its DSO effectively to ensure efficient cash flow management and timely collection of revenues.