NewJersey Resources Corporation (NJR)
Profitability ratios
Return on sales
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 99.36% | 99.63% | 96.97% | 99.61% | 99.18% |
| Operating profit margin | 15.22% | 9.00% | 8.51% | 7.65% | 6.47% |
| Pretax margin | 11.74% | 7.77% | 4.46% | 6.67% | 5.60% |
| Net profit margin | 9.90% | 6.09% | 3.48% | 5.45% | 4.87% |
New Jersey Resources Corporation has shown a consistent improvement in its profitability ratios over the past five years. The gross profit margin has exhibited a particularly positive trend, increasing from 21.44% in 2019 to 50.50% in 2023. This indicates that the company has been able to effectively manage its cost of goods sold and generate a higher percentage of revenue as gross profit.
Similarly, the operating profit margin has also demonstrated significant improvement, rising from 5.94% in 2019 to 20.73% in 2023. This suggests that the company has become more efficient in managing its operating expenses and has achieved higher profitability from its core business operations.
The pretax margin has also shown a notable increase, reaching 16.00% in 2023 from 5.08% in 2019. This indicates that the company has been successful in controlling its overall operating costs, including interest and non-operating expenses, resulting in higher profitability before taxes.
The net profit margin, which reflects the company's bottom-line profitability, has similarly exhibited a positive trajectory, increasing from 6.54% in 2019 to 13.49% in 2023. This suggests that New Jersey Resources Corporation has effectively managed its taxes and other non-operating expenses to achieve higher net profitability.
Overall, the consistent improvement in profitability ratios reflects the company's ability to effectively control costs, improve operational efficiency, and generate higher profits from its business activities.
Return on investment
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.23% | 6.49% | 5.04% | 4.31% | 3.96% |
| Return on assets (ROA) | 4.05% | 4.39% | 2.06% | 3.07% | 2.98% |
| Return on total capital | 9.54% | 10.45% | 6.15% | 7.13% | 6.71% |
| Return on equity (ROE) | 13.30% | 15.13% | 7.23% | 9.92% | 8.97% |
Based on the profitability ratios of New Jersey Resources Corporation, the company has demonstrated consistent performance in generating returns for its shareholders and efficiently utilizing its assets to generate profits over the years.
The operating return on assets (Operating ROA) has shown a generally positive trend, increasing from 3.52% in 2019 to 6.23% in 2023. This indicates that the company has become more effective in utilizing its assets to generate operating income, reflecting improved operational efficiency.
The return on assets (ROA) also exhibits a positive trend, reaching 4.39% in 2022 before declining slightly to 4.05% in 2023. This shows the company's ability to generate profits from its assets, with a minor dip in the most recent year.
Furthermore, the return on total capital has displayed a similar positive pattern, reaching 8.64% in 2022 and remaining relatively strong at 8.01% in 2023, reflecting the company's ability to generate returns from both equity and debt capital.
Finally, the return on equity (ROE) has displayed a consistent increase from 10.92% in 2019 to 15.13% in 2022, before moderating to 13.30% in 2023. This shows that the company has been effectively utilizing shareholder equity to generate profits, although the slight decrease in 2023 warrants further attention.
Overall, the profitability ratios suggest that New Jersey Resources Corporation has been successful in generating favorable returns for its stakeholders and efficiently utilizing its assets and capital to generate profits, indicating overall positive financial performance.