NewJersey Resources Corporation (NJR)

Inventory turnover

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Cost of revenue	US$ in thousands	18,188	17,021	16,815	102,814	11,593
Inventory	US$ in thousands	237,609	226,523	293,968	213,167	187,910
Inventory turnover		0.08	0.08	0.06	0.48	0.06

September 30, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $18,188K ÷ $237,609K
= 0.08

The inventory turnover for NewJersey Resources Corporation has been fluctuating over the past five years. In 2024 and 2023, the inventory turnover ratio remained flat at 0.08, indicating that the company is turning over its inventory 0.08 times a year. This suggests that the company is holding onto its inventory for a longer period compared to previous years.

In 2022 and 2020, the inventory turnover was lower at 0.06, suggesting a slower turnover of inventory, which could potentially lead to higher carrying costs and obsolete inventory issues.

The most significant increase in inventory turnover was in 2021, where the ratio jumped to 0.48. This indicates that the company significantly improved its inventory management and efficiency in that particular year.

Overall, the trend in inventory turnover for NewJersey Resources Corporation shows variability, with potential implications for working capital management and operational efficiency. Further analysis and comparison to industry benchmarks would provide deeper insights into the company's inventory management performance.