Middlesex Water Company (MSEX)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	153,788	161,157	135,679	133,956	127,194
Property, plant and equipment	US$ in thousands	—	935,584	881,299	813,014	722,044
Fixed asset turnover		—	0.17	0.15	0.16	0.18

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $153,788K ÷ $—K
= —

The fixed asset turnover ratio for Middlesex Water Co. has been relatively stable over the past five years, ranging between 0.16 to 0.19. This ratio indicates how efficiently the company is generating revenue from its investment in fixed assets. A lower ratio suggests that the company is not utilizing its fixed assets effectively to generate sales, which could be a concern for investors and management.

In this case, the decreasing trend in the fixed asset turnover ratio over the years may indicate a decrease in efficiency in utilizing fixed assets to generate sales. It is important for the company to investigate the reasons behind this trend and take necessary actions to improve the efficiency of its asset utilization. Additionally, a thorough review of the company's asset management practices and capital investment decisions may be warranted to optimize the utilization of fixed assets and improve overall financial performance.