NewJersey Resources Corporation (NJR)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.40 | 0.39 | 0.39 | 0.40 | 0.40 | 0.40 | 0.38 | 0.38 | 0.39 | 0.38 | 0.37 | 0.37 | 0.39 | 0.39 | 0.39 | 0.40 | 0.28 | 0.28 | 0.28 |
| Debt-to-capital ratio | 0.00 | 0.56 | 0.54 | 0.56 | 0.57 | 0.56 | 0.56 | 0.57 | 0.57 | 0.58 | 0.55 | 0.56 | 0.56 | 0.56 | 0.54 | 0.55 | 0.56 | 0.48 | 0.47 | 0.47 |
| Debt-to-equity ratio | 0.00 | 1.26 | 1.18 | 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 |
| 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 |
The solvency ratios of NewJersey Resources Corporation indicate its ability to meet its long-term financial obligations. The debt-to-assets ratio has been consistently low, indicating that the company's assets are mostly financed through equity rather than debt. This suggests a strong financial position and lower financial risk.
The debt-to-capital and debt-to-equity ratios have shown some fluctuations but have generally remained at moderate levels over the periods analyzed. These ratios reflect the proportion of debt in relation to the company's capital or equity, with higher ratios indicating higher leverage and financial risk.
The financial leverage ratio, which measures the company's financial risk by comparing its total assets to equity, also fluctuates but has generally remained stable. A higher ratio implies higher financial risk due to a higher dependence on debt financing.
Overall, based on these solvency ratios, NewJersey Resources Corporation appears to have a balanced and moderate level of leverage, with a low reliance on debt financing for its operations.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 7.64 | 4.29 | 3.31 | 3.22 | 3.55 | 3.91 | 4.49 | 4.73 | 5.09 | 4.50 | 2.70 | 3.49 | 2.92 | 3.77 | 5.36 | 4.03 | 4.11 | 4.42 | 4.91 | 5.04 |
The interest coverage ratio for NewJersey Resources Corporation has displayed fluctuations over the recent quarters. As of September 30, 2024, the interest coverage ratio stood at 7.64, indicating that the company generated operating income more than seven times its interest expenses during that period, reflecting a strong ability to meet its interest obligations comfortably. This is an improvement compared to the previous quarter where the ratio was 4.29.
However, it is important to note that the interest coverage ratio has shown some variability over the last few quarters, ranging from a low of 2.70 in the first quarter of 2022 to a high of 7.64 in the most recent quarter. This variability suggests that the company's ability to cover its interest expenses has not been consistent and may be influenced by various factors such as changes in operating income, interest rates, or debt levels.
Overall, a higher interest coverage ratio indicates a more favorable financial position for the company as it implies that NewJersey Resources Corporation is more capable of servicing its debt obligations with its operating income. Monitoring this ratio over time can provide valuable insights into the company's financial health and its ability to manage its debt effectively.