Middlesex Water Company (MSEX)
Activity ratios
Short-term
Turnover ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 16.64 | 7.92 | 7.81 | 7.51 | 7.83 | 7.77 | 7.69 | 8.08 | 8.05 | 7.84 | 8.71 | 7.81 | 7.90 | 8.05 | 7.21 | 7.17 | 6.92 | 7.01 | 6.75 | 6.62 |
| Receivables turnover | 5.59 | 5.18 | 6.05 | 6.50 | 6.53 | 5.32 | 5.90 | 6.67 | 5.99 | 5.21 | 6.15 | 6.76 | 6.19 | 5.40 | 6.01 | 7.29 | 6.66 | 5.62 | 6.47 | 7.72 |
| Payables turnover | 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 | 1.62 | 1.79 | 2.01 | 2.60 |
| Working capital turnover | 32.63 | 10.86 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Middlesex Water Co.'s activity ratios for inventory turnover and payables turnover are consistently at 0.00 across all periods, indicating that the company may not be maintaining inventory or utilizing trade credit effectively.
The receivables turnover ratio shows variability over the periods, ranging from 1.35 to 6.80. This suggests that the company is collecting its receivables at differing rates, potentially impacting its cash flow and liquidity.
The working capital turnover ratio, which is only available for two quarters, shows a significant increase in Q4 2023 compared to Q3 2023, indicating that Middlesex Water Co. is generating more revenue relative to its working capital. This could signal improved efficiency in utilizing its resources to generate sales.
Overall, Middlesex Water Co. should focus on managing its inventory and payables more effectively, maintaining a consistent approach to collecting receivables, and further analyzing the relationship between working capital and revenue generation for continued financial performance improvement.
Average number of days
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 21.93 | 46.06 | 46.72 | 48.61 | 46.64 | 47.01 | 47.45 | 45.15 | 45.32 | 46.53 | 41.90 | 46.72 | 46.21 | 45.32 | 50.61 | 50.91 | 52.72 | 52.09 | 54.11 | 55.09 |
| Days of sales outstanding (DSO) | days | 65.28 | 70.46 | 60.30 | 56.18 | 55.89 | 68.65 | 61.81 | 54.72 | 60.93 | 70.10 | 59.32 | 53.99 | 58.95 | 67.56 | 60.75 | 50.05 | 54.78 | 65.00 | 56.42 | 47.28 |
| Number of days of payables | days | 86.87 | 205.72 | 205.52 | 204.74 | 187.62 | 209.98 | 201.62 | 151.88 | 178.67 | 156.47 | 207.64 | 219.65 | 275.20 | 236.58 | 218.81 | 232.69 | 225.65 | 203.73 | 181.78 | 140.54 |
Days of inventory on hand (DOH) information is not provided in the data table, preventing an analysis of the efficiency of Middlesex Water Co.'s inventory management over the periods listed.
Regarding Days of Sales Outstanding (DSO), a key activity ratio indicating the average number of days it takes for the company to collect payment after a sale, there are fluctuations in the data. DSO varied from a low of 53.70 days in Q1 2023 to a high of 270.68 days in Q3 2023. Generally, a lower DSO is preferred as it indicates quicker cash conversion and efficient account receivables management. However, the significant increase in Q3 2023 warrants attention to potential issues with credit control or customer payment behavior.
Number of days of payables is not provided in the data table, which restricts the ability to evaluate the efficiency of Middlesex Water Co.'s payable terms and its impact on cash flow management.
In conclusion, while the DSO data shows some variability, the absence of DOH and payables information limits a comprehensive analysis of Middlesex Water Co.'s activity ratios over the periods highlighted.
Long-term
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | — | — | — | — | 0.17 | 0.17 | 0.16 | 0.17 | 0.15 | 0.16 | 0.16 | 0.16 | 0.16 | 0.17 | 0.17 | 0.17 | 0.18 | 0.18 | 0.19 | 2.29 |
| Total asset turnover | 0.12 | 0.13 | 0.14 | 0.14 | 0.15 | 0.15 | 0.14 | 0.13 | 0.13 | 0.13 | 0.13 | 0.14 | 0.14 | 0.14 | 0.14 | 0.14 | 0.14 | 0.14 | 0.16 | 0.17 |
The fixed asset turnover ratio for Middlesex Water Co. remained relatively stable at around 0.17 throughout the year 2023, indicating that the company generated $0.17 in sales for every $1 invested in fixed assets. This suggests that the company efficiently utilized its fixed assets to generate revenue.
On the other hand, the total asset turnover ratio fluctuated slightly in the range of 0.13 to 0.15 during the same period. The lower total asset turnover compared to fixed asset turnover may imply that the company may have a significant portion of assets tied up in non-operating or non-productive assets, which could potentially impact the overall efficiency of asset utilization.
Overall, while the fixed asset turnover remained stable, the total asset turnover ratio showed some variability, suggesting that Middlesex Water Co. may benefit from a closer examination of its asset composition and effectiveness in utilizing its total assets to generate sales revenue.