Middlesex Water Company (MSEX)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 24.55% | 70.01% | 68.19% | 69.86% | 70.36% |
| Operating profit margin | 25.50% | 29.37% | 24.48% | 27.93% | 27.93% |
| Pretax margin | 21.18% | 28.34% | 22.89% | 25.61% | 24.17% |
| Net profit margin | 20.50% | 26.33% | 26.93% | 28.68% | 26.64% |
Middlesex Water Co. has consistently maintained a high level of gross profit margin at 100% over the past five years, indicating effective cost management and pricing strategies. However, there has been a slight decline in operating profit margin from 26.39% in 2019 to 23.59% in 2023, suggesting potential challenges in controlling operating expenses or generating revenue.
The company's pretax margin has shown some fluctuations over the years, with a noticeable decrease from 28.12% in 2022 to 19.59% in 2023. This indicates that Middlesex Water Co. may be experiencing changes in its tax liabilities or operational efficiency.
Similarly, the net profit margin has shown a declining trend from 27.05% in 2020 to 18.89% in 2023, which could be attributed to various factors such as increasing expenses or a slowdown in revenue growth.
Overall, while the company has maintained healthy profitability ratios, the declining trend in operating, pretax, and net profit margins over the years indicates the need for careful monitoring and potential strategic adjustments to sustain profitability in the future.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 3.17% | 4.41% | 3.26% | 3.83% | 3.90% |
| Return on assets (ROA) | 2.55% | 3.95% | 3.58% | 3.94% | 3.72% |
| Return on total capital | 5.85% | 7.97% | 5.95% | 6.73% | 6.83% |
| Return on equity (ROE) | 7.45% | 10.60% | 9.94% | 11.03% | 10.40% |
Middlesex Water Co.'s profitability ratios show some fluctuations over the past five years.
1. Operating return on assets (Operating ROA) has been relatively stable around 3-4% range over the years, indicating the company's ability to generate operating income from its assets.
2. Return on assets (ROA) saw a significant drop in 2023 compared to 2022 and 2021, suggesting a decline in the company's overall profitability as measured by net income generated from its total assets.
3. Return on total capital also experienced a decrease in 2023 compared to the prior years, indicating a lower return generated from the company's total invested capital.
4. Return on equity (ROE) shows a declining trend from 2021 to 2023, indicating that the company's profitability in relation to shareholders' equity has decreased over time.
Overall, the profitability ratios of Middlesex Water Co. indicate some fluctuations and declining trends in recent years, which may warrant further investigation into the company's operations and financial performance.