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.