NewJersey Resources Corporation (NJR)

Return on total capital

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	458,104	437,013	436,947	229,735	267,098
Long-term debt	US$ in thousands	—	2,587,840	2,362,840	2,102,840	2,102,840
Total stockholders’ equity	US$ in thousands	2,200,440	1,990,740	1,817,210	1,630,860	1,643,900
Return on total capital		20.82%	9.54%	10.45%	6.15%	7.13%

September 30, 2024 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $458,104K ÷ ($—K + $2,200,440K)
= 20.82%

The return on total capital for NewJersey Resources Corporation has exhibited an improving trend over the past five years. The company's return on total capital increased from 7.13% in 2020 to 20.82% in 2024, indicating a significant improvement in the efficiency with which the company is utilizing its capital to generate returns. This suggests that the company has been able to generate higher profits in relation to the capital invested, reflecting positively on its operational performance and financial management. The consistent improvement in return on total capital indicates that NewJersey Resources Corporation has been effectively optimizing its capital structure and managing its assets to enhance shareholder value.