NewJersey Resources Corporation (NJR)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 0.08 | 0.10 | 0.15 | 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 |
| 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 |
| 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 |
| Working capital turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 31.12 | 33.71 | 33.76 | — | — | — |
NewJersey Resources Corporation has experienced fluctuations in its activity ratios over the past several quarters.
Inventory turnover has been generally low, with a significant decline in the most recent quarter compared to the previous quarter. This indicates that the company may be struggling to efficiently manage its inventory levels.
Receivables turnover has varied greatly, showing a peak in the Sep 30, 2023 quarter and a significant drop in the Mar 31, 2024 quarter. This suggests that the company may be facing challenges in collecting receivables promptly.
Payables turnover has also fluctuated, with the ratio decreasing in the recent quarters. This may indicate that the company is taking longer to pay its suppliers, which could impact relationships and cash flow management.
The working capital turnover ratio is not available for analysis due to missing data.
Overall, the trend in the activity ratios of NewJersey Resources Corporation indicates some potential inefficiencies in inventory management, receivables collection, and payables payment processes. Monitoring and improving these ratios could help enhance the company's operational efficiency and financial performance.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 4,768.38 | 3,502.92 | 2,380.26 | 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 | — | — | — |
| Days of sales outstanding (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 |
| Number of days of payables | days | 3,396.18 | 3,090.38 | 2,718.03 | 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 | — | — | — |
NewJersey Resources Corporation's activity ratios indicate how efficiently the company manages its inventory, collects receivables, and pays its suppliers.
Days of inventory on hand (DOH) show the average number of days it takes for the company to sell its inventory. A higher DOH indicates slower inventory turnover, which could tie up capital and increase holding costs. The company has shown significant fluctuations in its DOH over the periods, with a peak of 6,381.11 days in Sep 30, 2022, and a low of 173.47 days in Jun 30, 2022. The lower the DOH, the better, as it suggests faster inventory turnover.
Days of sales outstanding (DSO) represent the average number of days it takes for the company to collect its accounts receivable. A higher DSO indicates slower collections and potential liquidity issues. NewJersey Resources Corporation experienced fluctuations in its DSO over the periods, with a peak of 42.21 days in Mar 31, 2024, and a low of 12.04 days in Jun 30, 2023. A lower DSO is favorable as it signifies quicker cash conversion.
Number of days of payables demonstrate how long a company takes to pay its suppliers. A longer number of days of payables indicates that the company is holding onto cash longer, which can positively impact cash flows but might strain supplier relationships. NewJersey Resources Corporation showed variations in its payables days, with a peak of 4,455.06 days in Dec 31, 2020, and a low of 242.40 days in Jun 30, 2022. Lower payables days could signal strong bargaining power with suppliers.
Overall, the company's management of inventory, receivables, and payables has varied significantly over the periods, indicating fluctuating operational efficiencies and potential cash flow challenges. Monitoring and optimizing these activity ratios are essential for improving working capital management and overall financial performance.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 2.42 | 1.11 | 1.11 | 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 |
| Total asset turnover | 0.33 | 0.33 | 0.33 | 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 |
NewJersey Resources Corporation's long-term activity ratios, specifically the fixed asset turnover and total asset turnover, provide insight into the company's efficiency in utilizing its assets to generate sales.
The fixed asset turnover ratio has shown fluctuations over the periods analyzed, ranging from 1.11 to 4.96. A higher fixed asset turnover indicates that the company is generating more revenue relative to its investment in fixed assets, reflecting efficient asset utilization. In the most recent period, the fixed asset turnover was 2.42, suggesting that the company generated $2.42 in sales for every dollar invested in fixed assets.
On the other hand, the total asset turnover ratio remained relatively low and stable, ranging from 0.33 to 0.74. This ratio indicates how efficiently the company is using all its assets to generate sales. A lower total asset turnover may imply that the company has a significant amount of assets relative to its sales revenue, which could potentially indicate underutilization of assets.
Overall, the fixed asset turnover ratio shows improvement and generally higher efficiency compared to the total asset turnover ratio, suggesting that NewJersey Resources Corporation is effectively utilizing its fixed assets to generate sales but may have room for improvement in utilizing its total assets more efficiently. Further analysis and comparison with industry benchmarks would provide more context on the company's performance in this aspect.