NewJersey Resources Corporation (NJR)

Return on total capital

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	402,443	437,013	453,312	481,064	453,741	436,947	358,581	207,811	273,059	229,735	286,377	387,328	287,642	277,663	264,524	276,750	250,547	235,027	166,515	133,439
Long-term debt	US$ in thousands	2,637,840	2,587,840	2,537,840	2,537,840	2,537,840	2,362,840	2,412,840	2,202,840	2,202,840	2,102,840	2,102,840	2,102,840	2,102,840	2,102,840	1,492,840	1,442,840	1,442,840	1,442,840	1,207,840	1,172,040
Total stockholders’ equity	US$ in thousands	2,066,200	1,990,740	1,995,240	2,000,840	1,922,800	1,817,210	1,768,680	1,784,290	1,716,980	1,630,860	1,682,070	1,821,830	1,698,210	1,643,900	1,612,480	1,654,740	1,608,090	1,381,830	1,572,200	1,569,160
Return on total capital		8.56%	9.54%	10.00%	10.60%	10.17%	10.45%	8.58%	5.21%	6.97%	6.15%	7.57%	9.87%	7.57%	7.41%	8.52%	8.93%	8.21%	8.32%	5.99%	4.87%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $402,443K ÷ ($2,637,840K + $2,066,200K)
= 8.56%

The return on total capital for New Jersey Resources Corporation has shown some fluctuations in recent quarters. The return on total capital ranged from 4.15% in Q2 2022 to 9.18% in Q2 2023. Overall, the company's return on total capital has been relatively stable, hovering around the 7% to 9% range. It is important to monitor this metric closely to assess the company's efficiency in generating returns from its total capital investments.