NewJersey Resources Corporation (NJR)

Receivables turnover

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Revenue	US$ in thousands	2,357,170	2,674,370	4,515,980	3,389,420	2,991,430
Receivables	US$ in thousands	117,119	105,604	216,687	198,537	136,157
Receivables turnover		20.13	25.32	20.84	17.07	21.97

September 30, 2024 calculation

Receivables turnover = Revenue ÷ Receivables
= $2,357,170K ÷ $117,119K
= 20.13

The receivables turnover ratio measures how efficiently a company is able to collect payment from its customers. A higher receivables turnover ratio indicates that the company is collecting payments quickly, while a lower ratio may suggest potential issues with collecting outstanding receivables.

Analyzing the trend in NewJersey Resources Corporation's receivables turnover over the past five years, we observe fluctuations in the ratio. In 2024, the receivables turnover ratio stands at 20.13, lower than the previous year's ratio of 25.32. This decline could indicate a slight decrease in the company's ability to efficiently collect payments from customers during the current period.

Comparing the recent ratio to previous years, we see that in 2023 and 2020, the company achieved higher receivables turnover ratios of 25.32 and 21.97, respectively. This suggests that NewJersey Resources Corporation was more effective in collecting receivables in those years compared to 2024.

Conversely, in 2021, the ratio dropped significantly to 17.07, indicating a potential slowdown in the collection of payments from customers during that period. However, there was an improvement in 2022 with a ratio of 20.84, showing a better collection efficiency compared to 2021.

In conclusion, the analysis of NewJersey Resources Corporation's receivables turnover ratios over the past five years reveals fluctuations in the company's ability to collect payments from customers efficiently. Further investigation into the factors influencing these fluctuations would provide valuable insights into the company's financial performance and collection processes.