NewJersey Resources Corporation (NJR)

Pretax margin

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Earnings before tax but after interest (EBT)	US$ in thousands	374,681	313,999	351,117	151,176	199,501
Revenue	US$ in thousands	2,357,170	2,674,370	4,515,980	3,389,420	2,991,430
Pretax margin		15.90%	11.74%	7.77%	4.46%	6.67%

September 30, 2024 calculation

Pretax margin = EBT ÷ Revenue
= $374,681K ÷ $2,357,170K
= 15.90%

The pre-tax margin of NewJersey Resources Corporation has shown a generally positive trend over the past five years, increasing from 6.67% in September 2020 to 15.90% in September 2024. This indicates the company's ability to generate profits before accounting for taxes has been improving steadily.

A rising pre-tax margin suggests that the company is effectively managing its costs and expenses relative to its revenue, leading to higher profitability levels. This improvement could be attributed to various factors such as operational efficiency, cost control measures, pricing strategies, or revenue growth outpacing cost increases.

The significant increase in the pre-tax margin from 2021 to 2024 indicates a substantial enhancement in the company's profitability performance, reflecting positively on its overall financial health and management effectiveness. Investors and stakeholders may view this trend favorably as it demonstrates the company's ability to generate profits efficiently and sustainably.