Middlesex Water Company (MSEX)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 70.08% | 22.70% | 70.01% | 68.19% | 69.86% |
| Operating profit margin | 27.73% | 23.59% | 29.37% | 24.48% | 27.93% |
| Pretax margin | 26.71% | 19.59% | 28.34% | 22.89% | 25.61% |
| Net profit margin | 23.11% | 18.96% | 26.33% | 26.93% | 28.68% |
Middlesex Water Company has shown a generally strong trend in profitability ratios over the years. The Gross Profit Margin remained relatively stable, with a slight decrease in 2023, but recovering in 2024. Operating Profit Margin fluctuated over the years, with a dip in 2021 but a significant increase in 2022. The Pretax Margin peaked in 2022 before declining in 2023, then bouncing back in 2024. Net Profit Margin followed a similar pattern, reaching its highest point in 2020 before a gradual decrease, but slightly bouncing back in 2024. Overall, the company's profitability ratios suggest efficiency in managing costs and generating profits, despite some fluctuations in margins.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.24% | 3.17% | 4.41% | 3.26% | 3.83% |
| Return on assets (ROA) | 3.53% | 2.55% | 3.95% | 3.58% | 3.94% |
| Return on total capital | 6.67% | 5.85% | 7.97% | 5.95% | 6.73% |
| Return on equity (ROE) | 9.96% | 7.45% | 10.60% | 9.94% | 11.03% |
Middlesex Water Company's profitability ratios show some fluctuations over the years.
1. Operating Return on Assets (Operating ROA):
- The Operating ROA has shown some variability, starting at 3.83% in 2020, decreasing to 3.26% in 2021, then increasing to 4.41% in 2022, before dropping to 3.17% in 2023, and rising again to 4.24% in 2024. This indicates that the company's operating performance in generating profit from its assets has been mixed.
2. Return on Assets (ROA):
- The ROA has also displayed fluctuations, beginning at 3.94% in 2020, declining to 3.58% in 2021, increasing slightly to 3.95% in 2022, dropping to 2.55% in 2023, and then improving to 3.53% in 2024. This metric reflects the company's overall efficiency in generating profit from its assets.
3. Return on Total Capital:
- The Return on Total Capital has shown variation, starting at 6.73% in 2020, decreasing to 5.95% in 2021, then increasing to 7.97% in 2022, dropping to 5.85% in 2023, and finally, reaching 6.67% in 2024. This ratio indicates the company's ability to generate returns for all its capital providers.
4. Return on Equity (ROE):
- The ROE has fluctuated as well, beginning at 11.03% in 2020, declining to 9.94% in 2021, then increasing to 10.60% in 2022, dropping to 7.45% in 2023, and improving to 9.96% in 2024. ROE reflects the company's ability to generate returns for its shareholders based on their equity investment.
Overall, Middlesex Water Company's profitability ratios indicate some level of inconsistency in performance over the analyzed years. Further analysis and comparison with industry benchmarks could provide more insights into the company's financial health and performance.