NewJersey Resources Corporation (NJR)

The solvency ratios of NewJersey Resources Corporation indicate a strong financial position in terms of its ability to meet its long-term obligations. Looking at the debt-to-assets ratio, it is notable that the company has consistently maintained a low or zero ratio over the past five years, implying that the company's assets are largely financed through equity rather than debt.

Similarly, the debt-to-capital and debt-to-equity ratios have remained relatively stable over the same period, indicating a prudent capital structure with a significant portion of the company's capital being funded by equity rather than debt. This suggests a lower financial risk for the company as it has less dependence on external borrowings to fund its operations.

Moreover, the financial leverage ratio, which measures the proportion of assets that are financed by debt, has shown a decreasing trend over the years, highlighting a reduction in the company's reliance on debt financing.

Overall, based on the solvency ratios provided, NewJersey Resources Corporation appears to be in a healthy financial position with a strong ability to meet its financial obligations and maintain financial stability in the long term.

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Coverage ratios

Interest coverage is a key financial ratio used to assess a company's ability to meet its interest obligations on outstanding debt. A higher interest coverage ratio indicates a better ability to cover interest expenses using operating income. Looking at the historical trend of NewJersey Resources Corporation's interest coverage ratio, we observe fluctuations over the past five years:

- For the fiscal year ending September 30, 2020, the interest coverage ratio was 3.95, indicating that the company generated enough operating income to cover its interest expenses almost four times over.
- In the following year, the interest coverage ratio improved significantly to 5.09, showing an enhanced capacity to meet interest payments comfortably.
- However, in the most recent fiscal year ending September 30, 2021, the interest coverage ratio decreased to 2.92, suggesting a potential weakening in the company's ability to cover interest expenses with its operating income.
- The latest data for September 30, 2022, shows the interest coverage ratio rebounded to 5.09, matching the level achieved in 2023.
- Unfortunately, the interest coverage data for the most recent fiscal year ending September 30, 2024, is not available for comparison and analysis.

Overall, these fluctuations in NewJersey Resources Corporation's interest coverage ratio signify varying levels of financial health and the company's ability to handle its interest obligations. It is important for investors and stakeholders to monitor this ratio over time to assess the company's financial stability and creditworthiness.