NewJersey Resources Corporation (NJR)

Activity ratios

Short-term

Turnover ratios

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
Inventory turnover 0.08 0.08 0.09 0.16 0.06 0.06 0.41 2.10 0.71 0.88 0.71 0.12 0.06 0.06 -9.47 -11.23 -2.55 0.13 11.01 24.87
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
Payables turnover 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 0.18 16.67 19.72
Working capital turnover — — — — — — — — — — — 31.12 33.71 33.76 — — — 38.98 — 132.99

The inventory turnover ratio for New Jersey Resources Corporation has shown fluctuations over the past eight quarters, ranging from a low of 3.26 in Q1 2024 to a high of 19.24 in Q2 2022. The decreasing trend in recent quarters could indicate potential inefficiencies in managing inventory levels or slower sales.

In contrast, the receivables turnover ratio has also varied significantly, with a peak of 20.94 in Q3 2023 and a low of 6.29 in Q1 2023. Higher turnover ratios generally indicate that the company is collecting its receivables more quickly, which is a positive sign of efficient cash flow management.

The payables turnover ratio data is not available, so it is not possible to assess the company's efficiency in paying its suppliers. This ratio is important for understanding the company's liquidity management and relationships with creditors.

Additionally, the working capital turnover ratio data is not provided, thus making it impossible to evaluate how efficiently the company is using its working capital to generate sales revenue. This ratio can provide insights into how effectively the company is managing its current assets and liabilities to support its operations.

Overall, as an analyst, further investigation into the reasons behind the fluctuations in these ratios and comparison with industry benchmarks would be necessary to gain a more comprehensive understanding of New Jersey Resources Corporation's financial performance and operational efficiency.

Average number of days

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
Days of inventory on hand (DOH) days 4,803.67 4,857.58 3,974.41 2,331.86 5,959.41 6,381.11 883.40 173.47 513.58 415.77 514.82 2,939.99 5,663.07 5,916.26 — — — 2,846.56 33.15 14.67
Days of sales outstanding (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
Number of days of payables days 2,259.37 3,255.00 2,613.87 2,617.03 2,385.43 3,398.85 506.29 242.40 329.66 435.92 573.67 3,959.26 3,434.69 4,455.06 — — — 2,003.86 21.89 18.51

Days of inventory on hand (DOH) for New Jersey Resources Corporation has fluctuated over the quarters, ranging from a high of 111.86 days in Q1 2024 to a low of 18.97 days in Q2 2022. This indicates varying levels of efficiency in managing inventory, with longer DOH periods suggesting potential issues with excess inventory or slow sales turnover.

Days of sales outstanding (DSO) also show fluctuations, with the highest DSO of 58.00 days in Q1 2023 and the lowest DSO of 17.43 days in Q3 2023. This metric reflects the average number of days it takes for the company to collect revenue after a sale, with lower DSO values generally indicating better performance in collecting receivables and managing cash flow efficiently.

Unfortunately, there is no data provided for the number of days of payables, which would have allowed a comprehensive analysis of the company's cash conversion cycle and overall working capital management effectiveness. It is important to consider all three activity ratios together to get a more holistic view of New Jersey Resources Corporation's operational efficiency and financial performance.

Long-term

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
Fixed asset turnover 1.13 2.84 1.85 2.16 2.48 4.96 2.42 2.33 2.37 4.80 2.86 2.74 2.31 3.72 1.24 1.37 1.76 0.84 0.94 1.02
Total asset turnover 0.32 0.41 0.55 0.64 0.69 0.72 0.68 0.66 0.63 0.59 0.74 0.68 0.57 0.56 0.37 0.41 0.46 0.61 0.66 0.70

The fixed asset turnover ratio for New Jersey Resources Corporation has been decreasing over the past several quarters, indicating a declining efficiency in generating sales from its fixed assets. This suggests that the company is not effectively utilizing its fixed assets to generate revenue. On the other hand, the total asset turnover ratio has also been decreasing, albeit at a slower rate compared to the fixed asset turnover. This implies that the company's overall efficiency in generating sales from all its assets has been declining as well.

The decreasing trend in both ratios indicates that New Jersey Resources Corporation may be facing challenges in effectively utilizing its assets to drive revenue growth. It may be prudent for the company to conduct a thorough review of its asset management strategies to improve efficiency and profitability in the long term.