NewJersey Resources Corporation (NJR)

Receivables 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
Revenue (ttm)	US$ in thousands	2,294,073	2,234,507	2,186,229	2,192,587	2,674,367	3,468,262	4,014,136	4,540,009	4,515,989	4,164,967	3,884,509	3,766,679	3,389,416	3,981,548	3,708,295	3,052,065	2,991,428	1,955,697	2,090,606	2,344,402
Receivables	US$ in thousands	117,119	138,090	249,949	253,556	105,604	114,451	229,074	469,341	216,687	260,463	308,113	314,997	198,537	196,599	261,845	240,330	136,157	144,822	230,041	307,652
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

September 30, 2024 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $2,294,073K ÷ $117,119K
= 19.59

The receivables turnover ratio for NewJersey Resources Corporation has fluctuated over the past few quarters. The ratio represents how many times a company collects its average accounts receivable balance during a specific period. A higher turnover ratio indicates that the company is efficiently collecting payments from its customers.

In the most recent quarter, ending September 30, 2024, the receivables turnover ratio was 19.59. This signifies that NewJersey Resources Corporation collected its outstanding receivables approximately 19.59 times during that quarter. This is a significant increase compared to the previous quarter's ratio of 16.18, indicating an improvement in the efficiency of the company's accounts receivable collection.

Furthermore, the fluctuation in the receivables turnover ratio over the previous quarters suggests variability in the company's collection efforts. The ratio has ranged from a low of 7.62 in December 2019 to a high of 30.30 in June 2023. Generally, a higher turnover ratio is preferred as it indicates that the company is collecting payments quickly, which can improve cash flow and overall liquidity.

Overall, the trend in NewJersey Resources Corporation's receivables turnover indicates varying levels of efficiency in collecting outstanding payments from customers. It is essential for the company to continue monitoring and improving its accounts receivable management to ensure a healthy cash flow and financial stability.