Middlesex Water Company (MSEX)

Quick ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cash US$ in thousands 4,226 2,390 3,828 3,533 4,491
Short-term investments US$ in thousands
Receivables US$ in thousands 29,606 27,469 24,677 22,584 21,634
Total current liabilities US$ in thousands 82,888 103,829 117,859 56,619 56,848
Quick ratio 0.41 0.29 0.24 0.46 0.46

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($4,226K + $—K + $29,606K) ÷ $82,888K
= 0.41

The quick ratio of Middlesex Water Company has shown some fluctuations over the years. As of December 31, 2020, and December 31, 2021, the quick ratio remained stable at 0.46, indicating that the company had $0.46 in liquid assets to cover each dollar of current liabilities. However, there was a notable decline in the quick ratio to 0.24 as of December 31, 2022, suggesting a potential liquidity strain as the company may have had difficulties meeting short-term obligations with its available liquid assets.

The quick ratio improved slightly to 0.29 as of December 31, 2023, which may indicate that the company took steps to enhance its liquidity position. By December 31, 2024, the quick ratio further increased to 0.41, signaling a better ability to cover current liabilities with liquid assets compared to the previous year.

Overall, the fluctuating trend of the quick ratio of Middlesex Water Company reflects varying levels of liquidity risk and the company's ability to meet short-term obligations efficiently. It is essential for stakeholders to monitor these changes closely to assess the company's liquidity position and financial health.