NewJersey Resources Corporation (NJR)
Financial leverage ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 6,981,640 | 6,537,500 | 6,261,420 | 5,722,280 | 5,316,480 |
| Total stockholders’ equity | US$ in thousands | 2,200,440 | 1,990,740 | 1,817,210 | 1,630,860 | 1,643,900 |
| Financial leverage ratio | 3.17 | 3.28 | 3.45 | 3.51 | 3.23 |
September 30, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $6,981,640K ÷ $2,200,440K
= 3.17
The financial leverage ratio of NewJersey Resources Corporation has exhibited a decreasing trend over the past five years, decreasing from 3.51 in September 2021 to 3.17 in September 2024. This indicates that the company's reliance on debt to finance its operations has been gradually reducing. A lower financial leverage ratio suggests that the company is relying less on debt funding and may have a stronger equity base to support its operations and growth. This could potentially indicate improved financial stability and lower risk of financial distress for the company. However, it is important to consider the specific industry and business context in which the company operates to fully assess the implications of this trend.
Peer comparison
Sep 30, 2024