NewJersey Resources Corporation (NJR)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	1,990,740	1,817,210	1,630,860	1,643,900	1,381,830
ROE		13.30%	15.13%	7.23%	9.92%	8.97%

September 30, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $264,724K ÷ $1,990,740K
= 13.30%

The return on equity (ROE) for New Jersey Resources Corporation has varied over the past five years. In 2023, the ROE stood at 13.30%, indicating a decrease from the previous year's 15.13%. However, the ROE in 2023 remained higher than the figures from 2021, 2020, and 2019, which were 7.23%, 10.51%, and 10.92%, respectively.

The fluctuation in ROE suggests that the company's ability to generate profit from shareholders' equity has been inconsistent. While the 2022 figure was relatively high, the subsequent year witnessed a decline. This trend may indicate shifts in the company's financial leverage, asset management efficiency, or overall profitability. It is essential for stakeholders to closely monitor the factors influencing ROE to assess the company's performance and strategic decisions.