NewJersey Resources Corporation (NJR)

Payables turnover

		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
Cost of revenue (ttm)	US$ in thousands	18,188	17,076	17,076	17,064	17,021	17,069	16,987	16,904	16,815	93,311	185,493	186,227	187,137	102,996	11,630	11,738	11,593	-1,346,286	-1,057,803	-513,834
Payables	US$ in thousands	169,232	144,579	127,159	105,627	151,790	122,236	121,796	110,475	156,580	129,431	123,190	168,197	223,497	161,878	126,154	110,456	141,500	109,987	93,431	91,580
Payables turnover		0.11	0.12	0.13	0.16	0.11	0.14	0.14	0.15	0.11	0.72	1.51	1.11	0.84	0.64	0.09	0.11	0.08	-12.24	-11.32	-5.61

September 30, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $18,188K ÷ $169,232K
= 0.11

The payables turnover ratio for NewJersey Resources Corporation has fluctuated over the periods listed in the table. The payables turnover ratio measures how efficiently a company is managing its accounts payable by calculating how many times a company pays off its average accounts payable balance during a period.

In the recent periods, the payables turnover ratio has shown some inconsistency, with values ranging from 0.11 to 0.16. This indicates that the company might be taking longer or shorter time periods to pay off its suppliers or trade payables. A higher payables turnover ratio typically suggests that the company is paying its suppliers more quickly, while a lower ratio may indicate that the company is taking longer to pay its bills.

It is important to note the significant increase in the payables turnover ratio from the fourth quarter of 2021 to the first quarter of 2022, where the ratio surged from 0.08 to 1.51. This sudden increase could be due to various factors such as changes in payment terms, supplier relationships, or company's financial health.

Additionally, there are a few outliers in the data where the payables turnover ratio appears anomalously negative (e.g., -12.24, -11.32, -5.61). These negative values suggest discrepancies in the financial data or calculations that need to be investigated further to understand the true financial position of the company.

Overall, a detailed analysis of the payables turnover ratio trend along with other financial metrics and qualitative factors would provide a more comprehensive understanding of how effectively NewJersey Resources Corporation is managing its accounts payable over time.