Middlesex Water Company (MSEX)

Short-term

Turnover ratios

Middlesex Water Company's activity ratios provide insights into how efficiently the company manages its inventory, receivables, payables, and working capital.

1. Inventory Turnover: The company's inventory turnover ratio has been relatively stable over the years, with a slight increase from 2020 to 2021, followed by some fluctuation in the subsequent years. The ratio indicates that Middlesex Water Company is typically able to sell and replace its inventory multiple times during the year.

2. Receivables Turnover: Middlesex Water Company's receivables turnover ratio has shown consistency over the years, with values ranging from 6.01 to 6.53. This indicates that the company efficiently collects payments from its customers, with a moderate level of turnover in accounts receivables.

3. Payables Turnover: The payables turnover ratio has shown some variation, with a significant increase in 2023, followed by a decrease in 2024. This suggests that the company may be taking longer to pay its suppliers compared to previous years, which could impact its liquidity and relationships with vendors.

4. Working Capital Turnover: The working capital turnover ratio, while not available for previous years, shows a remarkably high value of 35.32 in 2023. This indicates that Middlesex Water Company is effectively using its working capital to generate sales revenue, potentially demonstrating robust operational efficiency and asset utilization.

Overall, Middlesex Water Company's activity ratios reflect a mix of efficiency in managing inventory and receivables, as well as some variability in payables management. The high working capital turnover in 2023 highlights the company's ability to generate sales from its working capital resources.

---

Average number of days

Middlesex Water Company's activity ratios provide insight into how efficiently the company manages its inventory, collects its receivables, and pays its payables.

1. Days of Inventory on Hand (DOH):
- The company's DOH has fluctuated over the years but generally indicates that Middlesex Water Company holds its inventory for around 45 to 46 days before it is sold. In 2023, there was a significant decrease to only 21.93 days, suggesting a more efficient inventory management that year.

2. Days of Sales Outstanding (DSO):
- Middlesex Water Company's DSO indicates the average number of days it takes for the company to collect its receivables. The DSO ranged from around 55 to 61 days over the years, with a slight decrease in 2024 to 56.32 days.

3. Number of Days of Payables:
- The number of days of payables highlights how long it takes for the company to pay its suppliers. Middlesex Water Company's payables period ranged from 86.87 to 275.21 days, with a notable decrease in 2023 to 86.87 days.

Overall, the analysis of Middlesex Water Company's activity ratios suggests that the company has been effectively managing its inventory, receivables, and payables over the years, with improvements in certain areas in 2023.

---

Long-term

The fixed asset turnover ratio for Middlesex Water Company has been relatively stable in recent years, ranging from 0.15 to 0.17. This indicates that the company generates $0.15 to $0.17 in revenue for every dollar invested in fixed assets. While the ratio slightly increased in 2022, it dropped back in 2023 and remained steady in 2024.

In terms of total asset turnover, the company's performance shows a similar pattern with the ratio fluctuating between 0.13 and 0.15. This ratio measures how efficiently the company utilizes its total assets to generate sales. The stable total asset turnover suggests that Middlesex Water Company has maintained a consistent level of efficiency in converting its assets into revenue over the years.

Overall, the long-term activity ratios indicate that Middlesex Water Company is effectively managing its assets to generate revenue, with a relatively steady performance in both fixed asset turnover and total asset turnover ratios.