NewJersey Resources Corporation (NJR)

Return on assets (ROA)

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Net income	US$ in thousands	264,724	274,922	117,890	163,007	123,935
Total assets	US$ in thousands	6,537,500	6,261,420	5,722,280	5,316,480	4,157,940
ROA		4.05%	4.39%	2.06%	3.07%	2.98%

September 30, 2023 calculation

ROA = Net income ÷ Total assets
= $264,724K ÷ $6,537,500K
= 4.05%

The return on assets (ROA) of New Jersey Resources Corporation has shown fluctuation over the past five years. In 2023, the ROA decreased to 4.05% from 4.39% in 2022, indicating a reduction in the company's ability to generate profits from its assets. However, compared to 2021 and 2020, the 2023 ROA is higher, suggesting an improvement in the company's asset utilization efficiency. In 2021, the ROA was 2.06%, which represents a significant increase from 3.48% in 2020. In 2019, the ROA was 3.88%, showing a slight decline compared to 2020.

Overall, the trend in ROA indicates some variability in the company's ability to generate profits from its assets. The management may need to focus on optimizing asset utilization to enhance profitability and ensure sustainable growth in the future.