Middlesex Water Company (MSEX)

Receivables turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	191,877	166,274	161,157	135,679	133,956
Receivables	US$ in thousands	29,606	27,469	24,677	22,584	21,634
Receivables turnover		6.48	6.05	6.53	6.01	6.19

December 31, 2024 calculation

Receivables turnover = Revenue ÷ Receivables
= $191,877K ÷ $29,606K
= 6.48

Based on the data provided, Middlesex Water Company's receivables turnover ratio has fluctuated over the past five years. The receivables turnover ratio indicates how efficiently the company is able to collect payments from its customers. A higher turnover ratio is generally more favorable as it suggests that the company is collecting payments more quickly.

Middlesex Water Company's receivables turnover ratios for the years ending December 31, 2020, and December 31, 2021, were 6.19 and 6.01, respectively. This suggests a slight decrease in the efficiency of collecting payments during that period.

However, there was an improvement in the receivables turnover ratio for the years ending December 31, 2022 and December 31, 2024, with ratios of 6.53 and 6.48, respectively. This indicates that the company was able to collect payments more efficiently during those years.

The receivables turnover ratio for December 31, 2023, was 6.05, showing a slight decrease from the previous year but still within a reasonable range.

Overall, Middlesex Water Company's receivables turnover ratios have remained relatively consistent and indicate efficient management of receivables. It is essential for the company to monitor this ratio to ensure timely collection of payments and maintain healthy cash flows.