NewJersey Resources Corporation (NJR)

Total 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
Total assets	US$ in thousands	6,981,640	6,537,500	6,261,420	5,722,280	5,316,480
Total asset turnover		0.34	0.41	0.72	0.59	0.56

September 30, 2024 calculation

Total asset turnover = Revenue ÷ Total assets
= $2,357,170K ÷ $6,981,640K
= 0.34

The total asset turnover of NewJersey Resources Corporation has exhibited a fluctuating trend over the past five years. In September 2022, the total asset turnover ratio was at its highest value of 0.72, indicating that the company generated $0.72 in revenue for every $1 of assets it possessed. However, in the subsequent years, the total asset turnover ratio decreased to 0.59 in September 2021, and further to 0.56 in September 2020, suggesting a declining efficiency in generating revenue from its assets.

In the most recent period ending September 2024, the total asset turnover ratio further decreased to 0.34, reflecting a significant decline in asset utilization efficiency. This decrease in the total asset turnover ratio may indicate challenges in effectively utilizing the company's assets to generate revenue, which could be a concern for stakeholders.

Overall, the decreasing trend in the total asset turnover ratio of NewJersey Resources Corporation over the past five years warrants further analysis to understand the factors influencing this decline and to identify potential strategies for improving asset utilization efficiency in the future.