NewJersey Resources Corporation (NJR)
Financial leverage ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 6,537,500 | 6,261,420 | 5,722,280 | 5,316,480 | 4,157,940 |
| Total stockholders’ equity | US$ in thousands | 1,990,740 | 1,817,210 | 1,630,860 | 1,643,900 | 1,381,830 |
| Financial leverage ratio | 3.28 | 3.45 | 3.51 | 3.23 | 3.01 |
September 30, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $6,537,500K ÷ $1,990,740K
= 3.28
The financial leverage ratio of New Jersey Resources Corporation has shown some fluctuation over the past five years. The ratio decreased from 3.51 in 2021 to 3.28 in 2023, which indicates a potential reduction in financial leverage. This trend suggests that the company may be relying less on debt to finance its operations and growth. However, it is noteworthy that the ratio was at its lowest in 2019 at 2.82, then increased to 3.02 in 2020, and has since experienced some volatility. It is important for stakeholders to monitor the trend of this ratio, as changes in financial leverage can impact the company's risk profile and cost of capital.
Peer comparison
Sep 30, 2023