Middlesex Water Company (MSEX)

Cash ratio

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
Cash and cash equivalents US$ in thousands 4,226 6,344 8,025 2,855 2,390 2,970 4,377 4,862 3,828 2,908 4,320 3,294 3,533 5,282 6,026 4,046 4,491 5,346 13,196 15,419
Short-term investments US$ in thousands — — — — — — — — — — — — — — — — — — — —
Total current liabilities US$ in thousands 82,888 79,912 134,983 117,156 103,829 121,303 87,563 95,978 117,859 92,967 78,829 59,669 56,619 92,494 80,745 65,801 56,848 85,354 84,294 80,539
Cash ratio 0.05 0.08 0.06 0.02 0.02 0.02 0.05 0.05 0.03 0.03 0.05 0.06 0.06 0.06 0.07 0.06 0.08 0.06 0.16 0.19

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 exhibited fluctuations over the years, as per the provided data. The cash ratio indicates the firm's ability to cover its short-term liabilities with its readily available cash and cash equivalents.

Between March 31, 2020, and June 30, 2021, the company had a relatively stable cash ratio ranging from 0.16 to 0.07, suggesting a moderate ability to cover its short-term obligations. However, from September 30, 2021, to December 31, 2024, the cash ratio gradually decreased from 0.06 to 0.05, indicating a slight decline in the company's ability to cover its short-term liabilities with its available cash.

It is essential for stakeholders to monitor the cash ratio of Middlesex Water Company closely to ensure the company maintains an adequate level of liquidity to meet its short-term financial obligations. A decreasing trend in the cash ratio may raise concerns regarding the company's liquidity position and its ability to weather unforeseen financial challenges.