Middlesex Water Company (MSEX)

Current ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total current assets	US$ in thousands	108,536	37,306	34,355	34,123	29,133
Total current liabilities	US$ in thousands	103,829	117,859	56,619	56,848	64,981
Current ratio		1.05	0.32	0.61	0.60	0.45

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $108,536K ÷ $103,829K
= 1.05

The current ratio of Middlesex Water Co. has exhibited fluctuating trends over the past five years. As of Dec 31, 2023, the current ratio stands at 1.05, indicating that the company has $1.05 in current assets to cover each dollar of current liabilities. This represents a significant improvement compared to the preceding years, particularly 2022 where the current ratio was at a low of 0.32.

A current ratio greater than 1.0 is generally considered favorable, as it suggests that the company's short-term obligations can be comfortably met by its current assets. The upward trend in the current ratio from 2022 to 2023 is a positive sign, indicating potential improvement in the company's liquidity position. It is essential to monitor this ratio over time to ensure continued stability in meeting short-term financial obligations effectively.