NewJersey Resources Corporation (NJR)

Return on total capital

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	437,013	436,947	229,735	267,098	189,457
Long-term debt	US$ in thousands	2,587,840	2,362,840	2,102,840	2,102,840	1,442,840
Total stockholders’ equity	US$ in thousands	1,990,740	1,817,210	1,630,860	1,643,900	1,381,830
Return on total capital		9.54%	10.45%	6.15%	7.13%	6.71%

September 30, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $437,013K ÷ ($2,587,840K + $1,990,740K)
= 9.54%

New Jersey Resources Corporation's return on total capital has demonstrated some fluctuations over the past five years. The return on total capital was 8.01% as of September 30, 2023, showing a slight decrease from 8.64% in the prior year. In 2021, the return on total capital was 4.83%, representing a significant improvement from the 5.42% in 2020. The company also experienced a marginal increase in the return on total capital from 5.34% in 2019 to 5.42% in 2020. These fluctuations indicate varying levels of efficiency in generating profits relative to the total capital invested by the company over the years. Further analysis of the underlying factors contributing to these changes would provide valuable insights into the company's performance and financial management.