NewJersey Resources Corporation (NJR)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	1,017	22,399	5,036	2,739	954	511	27,095	2,407	1,107	27,693	13,906	1,259	4,749	4,719	57,654	22,358	117,012	42,821	25,968	15,666
Short-term investments	US$ in thousands	—	-18,894	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total current liabilities	US$ in thousands	887,774	894,347	789,096	962,032	806,603	668,954	711,477	1,066,240	1,104,150	969,434	882,137	1,097,770	1,051,410	613,626	416,066	518,672	533,722	902,259	824,349	805,543
Cash ratio		0.00	0.00	0.01	0.00	0.00	0.00	0.04	0.00	0.00	0.03	0.02	0.00	0.00	0.01	0.14	0.04	0.22	0.05	0.03	0.02

September 30, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,017K + $—K) ÷ $887,774K
= 0.00

The cash ratio of NewJersey Resources Corporation has varied over the last few quarters, with fluctuations between 0.00 and 0.22. The cash ratio measures the company's ability to cover its short-term liabilities with its available cash and cash equivalents. A high cash ratio indicates that the company has a significant amount of cash on hand relative to its short-term obligations, providing a strong financial position.

In this case, the cash ratio of 0.00 in many quarters indicates that the company may have limited cash reserves compared to its short-term liabilities during those periods. However, the ratios of 0.04, 0.14, and 0.22 in some quarters suggest an improvement in the company's liquidity position during those periods.

It is important to note that a cash ratio of 0.00 does not necessarily indicate financial distress, as companies may have other sources of liquidity apart from cash, such as access to credit lines or short-term investments. The trend in the cash ratio should be monitored over time to assess the company's overall liquidity and ability to meet its short-term obligations effectively.