Middlesex Water Company (MSEX)

Net profit margin

		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
Net income (ttm)	US$ in thousands	31,524	32,930	37,231	36,198	42,430	42,496	39,681	41,736	36,543	37,613	38,874	37,664	38,425	38,189	36,571	35,004	33,888	32,810	33,981	34,510
Revenue (ttm)	US$ in thousands	153,588	156,997	159,166	157,131	161,158	154,740	147,137	144,256	135,282	135,917	135,959	134,658	133,956	131,761	129,520	127,795	127,194	128,174	129,392	130,640
Net profit margin		20.53%	20.97%	23.39%	23.04%	26.33%	27.46%	26.97%	28.93%	27.01%	27.67%	28.59%	27.97%	28.68%	28.98%	28.24%	27.39%	26.64%	25.60%	26.26%	26.42%

December 31, 2023 calculation

Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $31,524K ÷ $153,588K
= 20.53%

The net profit margin of Middlesex Water Co. has shown a consistent downward trend over the past eight quarters, declining from 26.05% in Q4 2022 to 18.89% in Q4 2023. This indicates that the company's profitability in relation to its revenue has decreased over time. While the margins remained relatively stable in the mid-20% range in 2022, there was a more significant decrease starting from Q3 2023.

A high net profit margin is desirable as it indicates that the company is efficiently managing its expenses in relation to its revenue. The decreasing trend in Middlesex Water Co.'s net profit margin may raise concerns about its ability to maintain profitability and competitiveness in the industry.

It is essential for the company to closely monitor its expenses, revenue streams, and overall efficiency to address the declining trend in net profit margin and work towards sustainable profitability in the future. Additional analysis of the company's cost structure and revenue generation strategies may provide insights into the factors contributing to the decreasing profitability trend.