ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. South Jersey Industries's annualizedNet Income for the quarter that ended in Sep. 2022 was $-152 Mil.
South Jersey Industries's average Total Assets over the quarter that ended in Sep. 2022 was $7,789 Mil. Therefore, South Jersey Industries's annualized ROA % for the quarter that ended in Sep. 2022 was -1.95%.
The historical rank and industry rank for South Jersey Industries's ROA % or its related term are showing as below:
SJI'
s ROA % Range Over the Past 10 Years
Min: -0.11 Med: 2.68 Max: 3.94
Current: 2.07
During the past 13 years, South Jersey Industries's highest ROA % was 3.94%. The lowest was -0.11%. And the median was 2.68%.
SJI's ROA % is not ranked
in the Utilities - Regulated industry.
Industry Median: 2.93
vs SJI: 2.07
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of South Jersey Industries's ROA %
For the Utilities - Diversified subindustry, South Jersey Industries's ROA %, along with its competitors' market caps and ROA % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
South Jersey Industries's ROA % Distribution in the Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, South Jersey Industries's ROA % distribution charts can be found below:
* The bar in red indicates where South Jersey Industries's ROA % falls into.
South Jersey Industries ROA % Calculation
South Jersey Industries's annualized ROA % for the fiscal year that ended in Dec. 2021 is calculated as:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Sep. 2022) net income data.
ROA % is displayed in the 30-year financial page.
South Jersey Industries (NYSE:SJI) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Sep. 2022) net income data. The Revenue data used here is four times the quarterly (Sep. 2022) revenue data.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
South Jersey Industries ROA % Related Terms
Thank you for viewing the detailed overview of South Jersey Industries's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.
South Jersey Industries (South Jersey Industries) Business Description
South Jersey Industries Inc is a New Jersey holding company that acquires and develops utility companies. Through its many subsidiaries, SJI is primarily involved in transmitting, distributing, and selling natural gas and electricity in the mid-Atlantic U.S. The company segments its operations into gas utility operations and energy group businesses. The majority of SJI's total revenue comes from its gas utility operations, which encompasses the company's principal subsidiary: South Jersey Gas. SJG purchases, transmit, and sells natural gas primarily for residential consumers in southern New Jersey. The energy group also represents a significant income stream through its wholesale energy and retail electric services.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
SJI has been successfully added to your 