NewJersey Resources Corporation (NJR)
Current ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 554,595 | 532,077 | 756,087 | 634,274 | 622,332 |
| Total current liabilities | US$ in thousands | 887,774 | 806,603 | 1,104,150 | 1,051,410 | 533,722 |
| Current ratio | 0.62 | 0.66 | 0.68 | 0.60 | 1.17 |
September 30, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $554,595K ÷ $887,774K
= 0.62
The current ratio of NewJersey Resources Corporation has shown a decreasing trend over the past five years, declining from 1.17 in 2020 to 0.62 in 2024. This indicates a weakening ability to meet its short-term obligations with its current assets. A current ratio below 1.0 may raise concerns about the company's liquidity and ability to cover its short-term liabilities. It is crucial for the company to closely monitor its current ratio and take necessary steps to improve it, such as managing its current assets and liabilities more effectively to ensure financial stability.
Peer comparison
Sep 30, 2024