NewJersey Resources Corporation (NJR)

Days of sales outstanding (DSO)

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Receivables turnover		25.32	20.84	17.07	21.97	18.22
DSO	days	14.41	17.51	21.38	16.61	20.04

September 30, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 25.32
= 14.41

The days of sales outstanding (DSO) is a measure of the average number of days it takes for a company to collect payment after a sale has been made. A lower DSO is generally favorable as it indicates that the company is collecting receivables more quickly.

Analyzing New Jersey Resources Corporation's DSO over the past five years, it is evident that there has been some fluctuation. In 2019, the DSO was 19.66 days, which indicates that the company was efficient in collecting receivables. However, in 2021, the DSO increased to 33.60 days, suggesting a slowdown in the collection of payments from customers.

The DSO decreased in 2022 to 27.22 days and then further decreased to 19.64 days in 2023. This indicates an improvement in the company's ability to collect receivables more quickly, which can be a positive sign for its cash flow management and working capital efficiency.

Overall, the trend in DSO for New Jersey Resources Corporation shows some variability, but the recent decrease in DSO is a positive development, suggesting improved efficiency in collecting payments from customers.