Middlesex Water Company (MSEX)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 4,226 | 2,390 | 3,828 | 3,533 | 4,491 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 82,888 | 103,829 | 117,859 | 56,619 | 56,848 |
| Cash ratio | 0.05 | 0.02 | 0.03 | 0.06 | 0.08 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($4,226K
+ $—K)
÷ $82,888K
= 0.05
The cash ratio of Middlesex Water Company has shown a decreasing trend over the past five years, declining from 0.08 on December 31, 2020, to 0.05 on December 31, 2024. This indicates that the company's ability to cover its short-term liabilities with its available cash and cash equivalents has fluctuated. The ratio dropped significantly from 0.08 in 2020 to 0.06 in 2021 and continued to decline to 0.03 in 2022, 0.02 in 2023, before partially recovering to 0.05 in 2024. A lower cash ratio may suggest potential liquidity challenges or a need to improve cash management practices. It is essential for the company to closely monitor its cash reserves to ensure it can meet its immediate financial obligations efficiently.
Peer comparison
Dec 31, 2024