Middlesex Water Company (MSEX)

Payables turnover

Dec 31, 2024 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
Cost of revenue (ttm) US$ in thousands 35,328 114,825 114,842 115,987 116,038 50,752 50,199 49,245 48,339 44,975 43,899 43,401 43,156 40,448 40,606 40,569 40,377 38,355 38,038 37,829
Payables US$ in thousands 28,050 32,355 25,222 23,243 27,618 28,604 28,265 27,623 24,847 25,873 24,249 18,059 21,125 17,340 23,100 24,414 30,443 24,860 22,803 24,116
Payables turnover 1.26 3.55 4.55 4.99 4.20 1.77 1.78 1.78 1.95 1.74 1.81 2.40 2.04 2.33 1.76 1.66 1.33 1.54 1.67 1.57

December 31, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $35,328K ÷ $28,050K
= 1.26

The payables turnover ratio for Middlesex Water Company has fluctuated over the years, indicating changes in the company's ability to manage its accounts payable effectively. The ratio was relatively stable around 1.5 to 1.7 from March 2020 to June 2021. There was a notable increase in the ratio in September 2021, reaching 2.33, which suggests that the company was paying its suppliers more frequently during that period.

Subsequently, the ratio fluctuated between 1.74 and 2.40 until June 2022, indicating some variability in the company's payment practices. However, from September 2022 to December 2024, there were significant fluctuations in the payables turnover ratio. The ratio peaked at 4.99 in March 2024, indicating that the company was paying its suppliers nearly five times within that period.

The sharp decline in the ratio in December 2024 to 1.26 suggests a significant change in the company's payment practices, potentially indicating that Middlesex Water Company extended its payment terms significantly or faced challenges in managing its payables during that period.

Overall, the trend in the payables turnover ratio for Middlesex Water Company reflects variations in the company's accounts payable management and payment practices over the years, highlighting the importance of monitoring this ratio for financial analysis and liquidity assessment.