NewJersey Resources Corporation (NJR)

Days of sales outstanding (DSO)

		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
Receivables turnover		19.59	16.18	8.75	8.65	25.32	30.30	17.52	9.67	20.84	15.99	12.61	11.96	17.07	20.25	14.16	12.70	21.97	13.50	9.09	7.62
DSO	days	18.63	22.56	41.73	42.21	14.41	12.04	20.83	37.73	17.51	22.83	28.95	30.52	21.38	18.02	25.77	28.74	16.61	27.03	40.16	47.90

September 30, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 19.59
= 18.63

The days of sales outstanding (DSO) for NewJersey Resources Corporation have shown fluctuations over the past years. DSO indicates the average number of days it takes for the company to collect payment after making a sale. Higher DSO values can suggest a longer collection period and potential liquidity issues, while lower values may indicate efficient collection practices.

Looking at the trend, we observe that DSO was relatively low in the most recent quarter, September 30, 2024, at 18.63 days, which indicates the company was efficient in collecting payments during that period. Conversely, DSO increased to 41.73 days in March 31, 2024, and 42.21 days in December 31, 2023, indicating a longer collection period and potentially slower cash conversion.

Comparing year-over-year, there has been variability in DSO figures. For instance, in September 2023, DSO was notably low at 14.41 days, suggesting effective collections, while it increased to 47.90 days in December 2019, indicating challenges in receivables management during that period.

It would be important for NewJersey Resources Corporation to further analyze the reasons behind these fluctuations in DSO to optimize cash flow management and improve operational efficiency. This could involve evaluating credit policies, collection processes, customer payment behaviors, and overall working capital management strategies to maintain a healthy balance between cash flow and sales growth.