NewJersey Resources Corporation (NJR)

Operating return on assets (Operating ROA)

		Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019
Operating income (ttm)	US$ in thousands	458,104	376,270	375,068	370,030	407,000	423,613	448,688	422,379	406,475	328,687	271,422	333,755	288,350	325,094	335,703	232,978	226,116	178,464	191,292	169,810
Total assets	US$ in thousands	6,981,640	6,784,120	6,647,380	6,749,050	6,537,500	6,312,580	6,296,130	6,610,090	6,261,420	6,161,920	5,870,000	5,981,160	5,722,280	5,408,620	5,425,130	5,396,900	5,316,480	5,282,080	5,155,200	5,095,170
Operating ROA		6.56%	5.55%	5.64%	5.48%	6.23%	6.71%	7.13%	6.39%	6.49%	5.33%	4.62%	5.58%	5.04%	6.01%	6.19%	4.32%	4.25%	3.38%	3.71%	3.33%

September 30, 2024 calculation

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

NewJersey Resources Corporation's operating return on assets (operating ROA) has shown fluctuations over the past several quarters. The company's operating ROA ranged from a low of 3.33% in the first quarter of 2020 to a high of 7.13% in the first quarter of 2023. This indicates varying levels of operational efficiency and profitability during the periods under review.

Overall, the operating ROA has generally trended upward from the end of 2020 to September 2022, with some quarterly fluctuations. However, from September 2022 to September 2023, there was a slight decline in operating ROA before a recovery in the following quarters.

The latest operating ROA as of September 30, 2024, stands at 6.56%, reflecting a moderate improvement compared to the previous quarter. This indicates that the company is generating $0.0656 in operating income for every $1 of assets it holds.

In conclusion, the analysis of NewJersey Resources Corporation's operating ROA suggests that the company has demonstrated an ability to generate reasonable returns from its assets, with some fluctuations in performance over the quarters. Further monitoring of trends and factors affecting operating ROA would be necessary to assess the company's operational efficiency and profitability.