NewJersey Resources Corporation (NJR)
Liquidity ratios
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 0.70 | 0.66 | 0.78 | 0.87 | 0.95 | 0.68 | 0.76 | 0.63 | 0.69 | 0.60 | 0.84 | 1.29 | 1.17 | 1.17 | 0.58 | 0.61 | 0.86 | 1.15 | 0.88 | 1.04 |
| Quick ratio | 0.27 | 0.13 | 0.17 | 0.36 | 0.44 | 0.20 | 0.30 | 0.37 | 0.29 | 0.19 | 0.33 | 0.77 | 0.51 | 0.47 | 0.21 | 0.31 | 0.40 | 0.32 | 0.35 | 0.67 |
| Cash ratio | 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 | 0.01 | 0.05 | 0.14 |
The liquidity ratios of New Jersey Resources Corporation have shown fluctuations over the past few quarters.
The current ratio, which measures the company's ability to meet short-term obligations with its current assets, declined steadily from Q1 2023 to Q1 2024, indicating a potential liquidity challenge. However, the current ratio improved slightly in Q3 2023 before declining again.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, also exhibited a downward trend over the quarters, suggesting that the company may have trouble meeting its short-term liabilities with its most liquid assets.
The cash ratio, which indicates the proportion of current liabilities that can be covered by cash and cash equivalents, fluctuated without a clear trend. However, the ratios were generally low, with values below 0.5 in most quarters, indicating a limited ability to cover short-term liabilities with cash on hand.
Overall, the liquidity ratios of New Jersey Resources Corporation raise concerns about its short-term financial health and ability to meet upcoming obligations. Management may need to closely monitor and improve liquidity management practices to ensure the company's financial stability.
Additional liquidity measure
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 2,586.51 | 1,616.99 | 1,372.59 | -264.35 | 3,611.71 | 2,999.77 | 399.94 | -39.99 | 214.44 | 1.23 | -40.83 | -993.50 | 2,257.11 | 1,477.81 | 27.03 | 40.16 | 47.90 | 862.74 | 34.83 | 36.02 |
The cash conversion cycle of New Jersey Resources Corporation has shown fluctuations over the recent quarters. In Q1 2024, the cash conversion cycle was 166.08 days, indicating it took the company approximately 166 days to convert its investments in inventory and other resources into cash from sales. This represents a significant increase compared to the previous quarter where the cycle was 104.72 days.
The cash conversion cycle was at its lowest in Q3 2023 at 66.75 days, suggesting that the company was able to convert its resources into cash more efficiently during that period. This was a notable improvement from Q4 2022 where the cycle was 82.48 days.
Overall, there are fluctuations in the cash conversion cycle, which could be influenced by factors such as the efficiency of inventory management, collection of receivables, and payment of payables. It is essential for New Jersey Resources Corporation to closely monitor and manage its cash conversion cycle to ensure optimal utilization of its resources and effective cash flow management.