NewJersey Resources Corporation (NJR)

Fixed asset turnover

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Revenue	US$ in thousands	2,357,170	2,674,370	4,515,980	3,389,420	2,991,430
Property, plant and equipment	US$ in thousands	948,533	941,590	911,148	706,706	803,137
Fixed asset turnover		2.49	2.84	4.96	4.80	3.72

September 30, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,357,170K ÷ $948,533K
= 2.49

The fixed asset turnover of NewJersey Resources Corporation has exhibited fluctuating trends over the past five years. In 2024, the fixed asset turnover ratio decreased to 2.49 from 2.84 in 2023. This decrease may indicate a decrease in the efficiency of utilizing fixed assets to generate sales revenue. However, it is important to note that the fixed asset turnover ratio of 2.49 is still higher than the ratios observed in 2020 and 2021.

Comparing the latest ratio to the higher ratios of 2022 and 2023, it appears that the company was more efficient in generating sales revenue from its fixed assets during those years. The significant drop from 2023 to 2024 may warrant further investigation into the management of fixed assets and the company's revenue generation strategies.

Overall, the fixed asset turnover ratio of NewJersey Resources Corporation has shown variability over the years, indicating fluctuations in operational efficiency in utilizing fixed assets to generate revenue. Further analysis and comparison with industry averages may provide additional insights into the company's asset utilization performance.