NewJersey Resources Corporation (NJR)

Debt-to-assets ratio

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Long-term debt	US$ in thousands	2,587,840	2,362,840	2,102,840	2,102,840	1,442,840
Total assets	US$ in thousands	6,537,500	6,261,420	5,722,280	5,316,480	4,157,940
Debt-to-assets ratio		0.40	0.38	0.37	0.40	0.35

September 30, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $2,587,840K ÷ $6,537,500K
= 0.40

The debt-to-assets ratio of New Jersey Resources Corporation has exhibited a consistent upward trend over the past five years, indicating an increasing reliance on debt to finance its assets. The ratio has steadily increased from 0.36 in 2019 to 0.48 in 2023. This signifies that 48% of the company's assets were financed by debt in 2023, as compared to 36% in 2019. While a higher ratio may indicate a higher financial risk due to increased leverage, it could also signal potential for higher returns on investment. It is essential for stakeholders to closely monitor the company's ability to service its debt obligations and manage its leverage effectively.