NewJersey Resources Corporation (NJR)

Days of sales outstanding (DSO)

		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
Receivables turnover		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	18.21	15.49	9.16
DSO	days	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	20.04	23.57	39.86

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.65
= 42.21

The days of sales outstanding (DSO) for New Jersey Resources Corporation has fluctuated over the past eight quarters, ranging from a low of 17.43 days in Q3 2023 to a high of 58.00 days in Q1 2023. The DSO decreased significantly from Q1 2023 to Q2 2023 before reaching its lowest point in Q3 2023. This suggests that the company's accounts receivable turnover improved during this period.

However, the DSO increased again in the following quarters, indicating potential challenges in collecting receivables efficiently. The recent DSO of 54.23 days in Q1 2024 represents an increase from the previous quarter, Q4 2023, where it was at 19.64 days. This rise in DSO could be attributed to various factors such as changes in credit policies, customer payment behavior, or economic conditions impacting collections.

It is important for New Jersey Resources Corporation to closely monitor and manage its DSO to ensure timely collection of receivables and optimize its cash flow cycle. A higher DSO indicates a longer time taken to convert sales into cash, potentially leading to liquidity issues. Regular evaluation and improvement of receivables management processes may help the company maintain a healthy DSO ratio and overall financial health.