Middlesex Water Company (MSEX)

Payables turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	57,412	116,038	48,337	43,159	40,376
Payables	US$ in thousands	28,050	27,618	24,847	21,125	30,443
Payables turnover		2.05	4.20	1.95	2.04	1.33

December 31, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $57,412K ÷ $28,050K
= 2.05

The payables turnover ratio for Middlesex Water Company has shown fluctuations over the past five years.

- In December 2020, the payables turnover ratio was 1.33, indicating that the company took approximately 1.33 times to pay off its accounts payable during that year.
- By December 2021, the ratio increased to 2.04, suggesting that the company improved its efficiency in paying off its suppliers compared to the previous year.
- In December 2022, the ratio slightly decreased to 1.95, which could indicate a minor delay in payment to suppliers.
- However, there was a significant improvement in December 2023, with the payables turnover ratio jumping to 4.20, indicating that the company paid off its accounts payable more than four times during that year.
- Lastly, by December 2024, the ratio decreased to 2.05, still reflecting a relatively efficient payment cycle.

Overall, the trend in the payables turnover ratio for Middlesex Water Company suggests variations in the efficiency of managing its accounts payable over the five-year period, with notable improvements in some years and minor fluctuations in others.