NewJersey Resources Corporation (NJR)

Operating return on assets (Operating ROA)

		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	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Operating income (ttm)	US$ in thousands	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	153,935	143,382	110,686
Total assets	US$ in thousands	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	4,157,940	4,123,410	4,089,970
Operating ROA		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%	3.70%	3.48%	2.71%

December 31, 2023 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $370,030K ÷ $6,749,050K
= 5.48%

Operating Return on Assets (Operating ROA) is a key financial ratio that measures a company's efficiency in generating profits from its assets used in operations. New Jersey Resources Corporation's Operating ROA has shown fluctuations over the past few quarters.

In Q1 of 2024, the Operating ROA stood at 5.48%, a decrease from the previous quarter's 6.23%. This may indicate a slight decrease in the company's ability to generate profits from its operational assets during this period.

Looking further back, the Operating ROA has generally hovered around the 6% range, with variations within that range. Q2 and Q3 of 2023 saw higher Operating ROA figures of 7.13% and 6.71% respectively, suggesting better profitability from assets compared to more recent quarters.

On the other hand, Q2 and Q3 of 2022 had lower Operating ROA figures at 4.62% and 5.33% respectively. This could imply a dip in the company's operational efficiency during those periods.

Overall, the trend in New Jersey Resources Corporation's Operating ROA indicates some variability in its ability to generate profits from its operational assets. It would be important to further investigate the reasons behind these fluctuations to assess the company's operational performance and efficiency in utilizing its assets for profitability.