NewJersey Resources Corporation (NJR)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	2,294,073	2,234,507	2,186,229	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
Property, plant and equipment	US$ in thousands	948,533	2,010,650	1,962,500	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
Fixed asset turnover		2.42	1.11	1.11	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

September 30, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $2,294,073K ÷ $948,533K
= 2.42

The fixed asset turnover ratio of NewJersey Resources Corporation has exhibited fluctuations over the past several quarters. The ratio measures how efficiently the company generates revenue from its investment in fixed assets. A higher fixed asset turnover ratio generally indicates better efficiency in asset utilization.

In the most recent quarter ending September 30, 2024, the fixed asset turnover ratio was 2.42, representing a significant increase from the previous quarter and indicating that the company generated $2.42 in revenue for every dollar invested in fixed assets. This suggests improved efficiency in utilizing its fixed assets to generate sales.

However, it is notable that the ratio has shown variability in recent quarters, with fluctuations observed throughout the past year. For instance, in the quarter ending December 31, 2023, the ratio was 1.13, indicating a decline in efficiency compared to the latest quarter.

Overall, while the company's fixed asset turnover ratio has shown improvements in certain quarters, the fluctuations highlight the need for NewJersey Resources Corporation to consistently assess and optimize its utilization of fixed assets to enhance operational efficiency and financial performance.