NewJersey Resources Corporation (NJR)

Operating return on assets (Operating ROA)

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Operating income	US$ in thousands	407,000	406,475	288,350	228,909	164,556
Total assets	US$ in thousands	6,537,500	6,261,420	5,722,280	5,316,480	4,157,940
Operating ROA		6.23%	6.49%	5.04%	4.31%	3.96%

September 30, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $407,000K ÷ $6,537,500K
= 6.23%

New Jersey Resources Corporation's operating return on assets (operating ROA) indicates the company's efficiency in generating operating profit from its assets. The trend in operating ROA demonstrates an improving performance, with a steady increase from 3.52% in 2019 to 6.23% in 2023. This suggests that the company has been able to improve its operational efficiency in utilizing its assets to generate operating income.

The upward trend in operating ROA indicates that the company has been effectively managing its assets to generate higher operating profits over the years. This could be attributed to improved operational processes, cost management, and potentially higher revenue generation from its asset base.

The consistent growth in operating ROA reflects positively on New Jersey Resources Corporation's ability to optimize the utilization of its assets in generating operating income, suggesting that the company may be efficiently managing its operations and resources to drive profitability. However, it is important to consider other factors, such as industry benchmarks and economic conditions, to gain a comprehensive understanding of the company's operational performance.