NewJersey Resources Corporation (NJR)

Debt-to-assets ratio

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Long-term debt	US$ in thousands	—	2,587,840	2,362,840	2,102,840	2,102,840
Total assets	US$ in thousands	6,981,640	6,537,500	6,261,420	5,722,280	5,316,480
Debt-to-assets ratio		0.00	0.40	0.38	0.37	0.40

September 30, 2024 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $—K ÷ $6,981,640K
= 0.00

The debt-to-assets ratio of NewJersey Resources Corporation has been fluctuating over the past five years. In 2024, the company showed a debt-to-assets ratio of 0.00, indicating that it had no debt relative to its total assets, which can be considered a very favorable position. This might imply that the company primarily funds its operations through equity or has made significant debt repayments.

In the preceding years, the company's debt-to-assets ratio was 0.40 in 2023, 0.38 in 2022, 0.37 in 2021, and 0.40 in 2020. These ratios suggest that the company had a moderate level of debt compared to its total assets during those years.

The decrease in the debt-to-assets ratio over the years could signify that the company has been reducing its debt levels in relation to its asset base. A declining trend in this ratio is generally seen as positive as it indicates lower financial risk and greater financial stability. However, it's important to note that a very low debt-to-assets ratio can also indicate underutilization of debt for potential growth opportunities.

Overall, NewJersey Resources Corporation's debt-to-assets ratio has shown variability but has improved significantly in 2024, reflecting a strong financial position and efficient management of debt.