Middlesex Water Company (MSEX)

Current ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total current assets	US$ in thousands	42,973	108,536	37,306	34,355	34,123
Total current liabilities	US$ in thousands	82,888	103,829	117,859	56,619	56,848
Current ratio		0.52	1.05	0.32	0.61	0.60

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $42,973K ÷ $82,888K
= 0.52

The current ratio measures a company's ability to meet its short-term financial obligations with its current assets. Looking at the data provided for Middlesex Water Company, we observe fluctuations in the current ratio over the years:

- As of December 31, 2020, the current ratio was 0.60, indicating that the company had $0.60 in current assets for every $1 in current liabilities.
- By December 31, 2021, the current ratio slightly improved to 0.61, showing a marginal increase in the company's ability to cover its short-term obligations.
- However, the ratio dropped significantly to 0.32 by December 31, 2022, suggesting potential challenges in meeting immediate financial commitments.
- The situation reversed by December 31, 2023, with a current ratio of 1.05, indicating a strong ability to cover short-term liabilities with current assets.
- Subsequently, by December 31, 2024, the current ratio decreased to 0.52, although it remained above 1, signifying a moderate capacity to meet short-term obligations.

Overall, the fluctuation in Middlesex Water Company's current ratio highlights variability in its short-term liquidity position over the years, with potential implications for its financial health and ability to manage working capital efficiently.