NewJersey Resources Corporation (NJR)

Quick ratio

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Cash	US$ in thousands	1,017	954	1,107	4,749	117,012
Short-term investments	US$ in thousands	—	—	—	—	—
Receivables	US$ in thousands	117,119	105,604	216,687	198,537	136,157
Total current liabilities	US$ in thousands	887,774	806,603	1,104,150	1,051,410	533,722
Quick ratio		0.13	0.13	0.20	0.19	0.47

September 30, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,017K + $—K + $117,119K) ÷ $887,774K
= 0.13

The quick ratio of NewJersey Resources Corporation has shown a declining trend over the past five years, starting at 0.47 in 2020 and decreasing to 0.13 in 2024. This indicates a consistent decrease in the company's ability to cover its short-term obligations with its most liquid assets. The quick ratio remained relatively stable at around 0.13 in the last two years, suggesting that the company's current assets may not be sufficient to meet its current liabilities efficiently. This declining trend in the quick ratio raises concerns about the company's liquidity position and its ability to meet upcoming financial obligations without relying on external sources of financing.