NewJersey Resources Corporation (NJR)

Cash ratio

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Cash and cash equivalents	US$ in thousands	954	1,107	4,749	117,012	2,676
Short-term investments	US$ in thousands	—	—	—	—	0
Total current liabilities	US$ in thousands	806,603	1,104,150	1,051,410	533,722	446,377
Cash ratio		0.00	0.00	0.00	0.22	0.01

September 30, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($954K + $—K) ÷ $806,603K
= 0.00

The cash ratio of New Jersey Resources Corporation has fluctuated over the past five years, ranging from 0.21 to 0.56. The ratio indicates the company's ability to cover its short-term obligations with its cash and cash equivalents. In 2023, the cash ratio was 0.25, suggesting that the company held 25 cents in cash and cash equivalents for every dollar of its current liabilities. This indicates a moderate ability to meet short-term obligations with its readily available cash. The increase in the cash ratio from 2021 to 2023 reflects improved liquidity, potentially providing the company with a stronger financial position to manage its short-term obligations. However, it is important to consider other liquidity and financial metrics for a comprehensive assessment of the company's overall financial health.