NewJersey Resources Corporation (NJR)

Quick 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	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	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Receivables	US$ in thousands	117,119	138,090	249,949	253,556	105,604	114,451	229,074	469,341	216,687	260,463	308,113	314,997	198,537	196,599	261,845	240,330	136,157	144,822	230,041	307,652
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
Quick ratio		0.13	0.16	0.32	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

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 significant fluctuations over the past few years, ranging from as low as 0.13 to as high as 0.77. A quick ratio below 1 indicates that the company may have difficulty meeting its short-term obligations with its liquid assets.

Analyzing the trend, we observe that the quick ratio has been relatively unstable, with some quarters showing a ratio below 0.2 while others exceeding 0.4. This inconsistency may indicate challenges in managing short-term liquidity effectively.

The highest quick ratio of 0.77 in March 2021 suggests that the company had a relatively strong ability to cover its immediate liabilities with its quick assets. However, the quick ratio dropped to 0.13 in September 2020, indicating a significant decrease in liquidity.

Overall, the quick ratio of NewJersey Resources Corporation indicates that the company may need to improve its management of current assets and liabilities to ensure better liquidity and financial stability in the short term.