NewJersey Resources Corporation (NJR)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	2,192,587	2,674,367	3,468,262	4,014,136	4,540,009	4,515,989	4,164,967	3,884,509	3,766,679	3,389,416	3,981,548	3,708,295	3,052,065	2,991,428	1,955,697	2,090,606	2,344,402	2,542,837	2,721,864	2,844,092
Property, plant and equipment	US$ in thousands	1,937,580	941,590	1,872,060	1,860,810	1,833,150	911,148	1,719,750	1,665,460	1,589,400	706,706	1,391,830	1,351,080	1,321,990	803,137	1,578,240	1,527,810	1,328,700	3,041,170	2,901,440	2,789,330
Fixed asset turnover		1.13	2.84	1.85	2.16	2.48	4.96	2.42	2.33	2.37	4.80	2.86	2.74	2.31	3.72	1.24	1.37	1.76	0.84	0.94	1.02

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $2,192,587K ÷ $1,937,580K
= 1.13

The fixed asset turnover ratio of New Jersey Resources Corporation has shown a slightly declining trend over the past few quarters. In Q1 2024, the ratio stands at 0.33, lower than the previous quarter's value of 0.39 in Q4 2023. This indicates that the company generated $0.33 in revenue for each dollar of fixed assets during the quarter.

Looking further back, the ratio has experienced fluctuations, with a peak of 0.62 in both Q1 and Q4 of 2023. This suggests that the efficiency of utilizing fixed assets to generate revenue was higher during those periods compared to Q1 2024.

Overall, the declining trend in fixed asset turnover may indicate potential inefficiencies in the company's asset utilization or changes in the revenue-generating capacity of its fixed assets. Further analysis is recommended to understand the underlying factors contributing to these fluctuations and to assess the company's operational efficiency and financial performance.