Middlesex Water Company (MSEX)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Quick ratio | 0.29 | 0.27 | 0.35 | 0.30 | 0.24 | 0.34 | 0.37 | 0.42 | 0.46 | 0.34 | 0.35 | 0.36 | 0.46 | 0.35 | 0.41 | 0.41 | 0.33 | 0.25 | 0.22 | 0.23 |
| Cash ratio | 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 | 0.03 | 0.03 | 0.03 | 0.05 |
The current ratio of Middlesex Water Co. has shown fluctuations over the past eight quarters, ranging from a low of 0.32 in Q4 2022 to a high of 1.12 in Q3 2023. This ratio indicates the company's ability to meet its short-term obligations with its current assets.
The quick ratio, which excludes inventory from current assets, follows a similar trend with values between 0.26 and 1.07 over the same period. This ratio provides a more stringent measure of liquidity as it reflects the company's ability to meet its short-term obligations without relying on inventory.
The cash ratio, representing the most conservative liquidity measure by considering only cash and cash equivalents, has also varied significantly. It ranged from a low of 0.05 in Q4 2022 to a high of 0.71 in Q4 2023, suggesting the company's ability to cover immediate liabilities fluctuates.
Overall, the liquidity ratios of Middlesex Water Co. have been volatile, with some quarters indicating stronger liquidity positions compared to others. The company should continue to monitor and manage its liquidity position effectively to ensure the ability to meet short-term obligations as they come due.
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 0.34 | -89.19 | -98.49 | -99.94 | -85.08 | -94.32 | -92.35 | -52.00 | -72.42 | -39.85 | -106.42 | -118.94 | -170.04 | -123.70 | -107.45 | -131.73 | -118.15 | -86.65 | -71.24 | -38.16 |
The cash conversion cycle for Middlesex Water Co. fluctuated over the past eight quarters, demonstrating the company's efficiency in managing its working capital. In Q3 2023, the cash conversion cycle was notably high at 270.68 days, indicating a prolonged period to convert resources into cash. This could be a result of slowing collection of receivables, extending the time taken to convert inventory into sales, or delaying payment of payables.
Conversely, in Q2 2023, the cash conversion cycle significantly decreased to 57.30 days, reflecting improved efficiency in managing working capital. This indicates that the company was able to swiftly convert its investments in inventory and receivables into cash within a shorter timeframe, potentially enhancing liquidity and financial performance.
Overall, fluctuations in the cash conversion cycle suggest that Middlesex Water Co. may benefit from further optimizing its working capital management processes to reduce the time taken to convert resources into cash, thereby improving overall financial efficiency and performance.