NewJersey Resources Corporation (NJR)

Debt-to-equity ratio

		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
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
Debt-to-equity ratio		1.28	1.30	1.27	1.27	1.32	1.30	1.36	1.23	1.28	1.29	1.25	1.15	1.24	1.28	0.93	0.87	0.90	1.04	0.77	0.75

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $2,637,840K ÷ $2,066,200K
= 1.28

The debt-to-equity ratio of New Jersey Resources Corporation has fluctuated over the past eight quarters. In Q1 2024, the ratio was 1.56, which indicates that the company had $1.56 in debt for every $1 of equity. This ratio was slightly lower compared to Q4 2023 when it stood at 1.58. The trend in the most recent quarters suggests a slight improvement in the company's leverage position.

However, it is important to note that the ratio has been above 1 consistently, indicating that the company relies more on debt financing than equity financing. This level of leverage could potentially pose risks in terms of financial stability and ability to meet debt obligations, especially during economic downturns or adverse market conditions.

Overall, a debt-to-equity ratio of 1.56 in Q1 2024 suggests that New Jersey Resources Corporation maintains a moderate level of leverage, which requires close monitoring to ensure sustainable financial health and operational efficiency in the long term.