NewJersey Resources Corporation (NJR)
Profitability ratios
Return on sales
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 99.23% | 99.36% | 99.63% | 96.97% | 99.61% |
| Operating profit margin | 19.43% | 15.22% | 9.00% | 8.51% | 7.65% |
| Pretax margin | 15.90% | 11.74% | 7.77% | 4.46% | 6.67% |
| Net profit margin | 12.29% | 9.90% | 6.09% | 3.48% | 5.45% |
NewJersey Resources Corporation has maintained consistently high gross profit margins over the past five years, ranging from 96.97% to 99.63%. This indicates the company has effectively managed its production costs and pricing strategies to generate strong profitability from its core operations.
In terms of operating profit margins, there has been a notable improvement from 7.65% in 2020 to 19.43% in 2024. This suggests that the company has been able to control its operating expenses more efficiently and enhance operational efficiency to drive higher profits.
The pretax margin also shows a positive trend, increasing steadily from 4.46% in 2021 to 15.90% in 2024. This indicates that NewJersey Resources Corporation has been successful in managing its interest expenses and non-operating costs, leading to higher profitability before taxes.
The net profit margin, reflecting the company's bottom line efficiency, has improved consistently over the years, reaching 12.29% in 2024. This indicates that not only has the company managed its core business operations effectively, but it has also effectively controlled taxes and other non-operating costs to enhance its overall profitability.
Overall, the profitability ratios of NewJersey Resources Corporation demonstrate a positive trend, reflecting a sound financial performance and effective management of operational and financial aspects of the business.
Return on investment
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.56% | 6.23% | 6.49% | 5.04% | 4.31% |
| Return on assets (ROA) | 4.15% | 4.05% | 4.39% | 2.06% | 3.07% |
| Return on total capital | 20.82% | 9.54% | 10.45% | 6.15% | 7.13% |
| Return on equity (ROE) | 13.17% | 13.30% | 15.13% | 7.23% | 9.92% |
NewJersey Resources Corporation's profitability ratios show a positive trend over the past five years.
1. Operating return on assets (Operating ROA) has consistently increased from 4.31% in 2020 to 6.56% in 2024. This indicates that the company's ability to generate operating income from its assets has improved steadily over this period.
2. Return on assets (ROA) has fluctuated but generally increased from 3.07% in 2020 to 4.15% in 2024. This ratio signifies the company's efficiency in utilizing its assets to generate profit, with an upward trend overall.
3. Return on total capital has shown significant improvement, increasing from 7.13% in 2020 to 20.82% in 2024. This indicates that the company is generating higher returns on its total invested capital, reflecting an efficient use of both debt and equity.
4. Return on equity (ROE) has also demonstrated a positive trend, rising from 9.92% in 2020 to 13.17% in 2024. This ratio reflects the company's ability to generate profit from shareholders' equity and indicates an increasing profitability for the company.
Overall, the profitability ratios of NewJersey Resources Corporation show a consistent growth trajectory and improvement in the company's profitability over the past five years.