NewJersey Resources Corporation (NJR)

Operating return on assets (Operating ROA)

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Operating income	US$ in thousands	458,104	407,000	406,475	288,350	228,909
Total assets	US$ in thousands	6,981,640	6,537,500	6,261,420	5,722,280	5,316,480
Operating ROA		6.56%	6.23%	6.49%	5.04%	4.31%

September 30, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $458,104K ÷ $6,981,640K
= 6.56%

Operating return on assets (operating ROA) is a key financial ratio that measures a company's ability to generate operating income from its assets. For NewJersey Resources Corporation, the operating ROA has shown a consistent improvement over the past five years, increasing from 4.31% in 2020 to 6.56% in 2024. This indicates that the company has been able to effectively utilize its assets to generate operating income.

The steady increase in operating ROA suggests that NewJersey Resources Corporation has been enhancing its operational efficiency and profitability over the years. This improvement may be driven by various factors such as cost management, revenue growth, and asset optimization strategies.

Overall, the upward trend in operating ROA reflects positively on the company's performance and indicates that it is effectively utilizing its assets to generate operating profits. However, it is important to continue monitoring this ratio to ensure sustained improvement in operational efficiency and profitability.