NewJersey Resources Corporation (NJR)

Financial leverage ratio

		Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Total assets	US$ in thousands	6,981,640	6,784,120	6,647,380	6,749,050	6,537,500	6,312,580	6,296,130	6,610,090	6,261,420	6,161,920	5,870,000	5,981,160	5,722,280	5,408,620	5,425,130	5,396,900	5,316,480	5,282,080	5,155,200	5,095,170
Total stockholders’ equity	US$ in thousands	2,200,440	2,143,020	2,179,220	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
Financial leverage ratio		3.17	3.17	3.05	3.27	3.28	3.16	3.15	3.44	3.45	3.48	3.29	3.48	3.51	3.22	2.98	3.18	3.23	3.28	3.12	3.17

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 shown fluctuations over the past few years, ranging from 2.98 to 3.51. The ratio indicates the company's reliance on debt to finance its operations and investments. A higher financial leverage ratio suggests higher financial risk and potential for volatility in the company's earnings and cash flows.

In the recent quarters, the financial leverage ratio has been relatively stable around 3.15 to 3.30, indicating a consistent level of debt usage by the company. The ratio peaked at 3.51 in the fourth quarter of 2021 and then declined to 2.98 in the first quarter of 2021 before gradually increasing again.

It is important for investors and stakeholders to monitor the financial leverage ratio of NewJersey Resources Corporation to assess the company's ability to meet its debt obligations, manage its financial risk, and sustain long-term profitability.