Middlesex Water Company (MSEX)

Current ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Total current assets	US$ in thousands	108,536	135,762	40,570	39,521	37,306	41,472	39,020	32,865	34,355	40,567	37,242	31,380	34,123	37,867	43,989	40,010	29,133	34,711	32,283	29,650
Total current liabilities	US$ in thousands	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	64,981	103,475	102,532	93,246
Current ratio		1.05	1.12	0.46	0.41	0.32	0.45	0.49	0.55	0.61	0.44	0.46	0.48	0.60	0.44	0.52	0.50	0.45	0.34	0.31	0.32

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 fluctuations over the past eight quarters. In Q4 2023, the current ratio stood at 1.05, indicating that the company's current assets exceeded its current liabilities. This was a slight decrease from the previous quarter, where the ratio was 1.12. However, a ratio above 1 suggests that the company is generally able to meet its short-term obligations.

In contrast, the current ratio was considerably lower in Q1 2022 at 0.32, indicating a potential liquidity issue as current liabilities far exceeded current assets. Since then, there has been an improvement in the current ratio trend, with fluctuations observed in subsequent quarters.

The current ratio is an important indicator of a company's short-term liquidity and ability to cover its immediate financial obligations. While a ratio above 1 is generally favorable, it is important to look at trends over time to assess the company's overall financial health and ability to manage its short-term liquidity effectively.