Middlesex Water Company (MSEX)

Operating return on assets (Operating ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Operating income	US$ in thousands	39,223	47,333	33,211	37,420	35,520
Total assets	US$ in thousands	1,236,050	1,074,450	1,020,020	976,470	909,878
Operating ROA		3.17%	4.41%	3.26%	3.83%	3.90%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $39,223K ÷ $1,236,050K
= 3.17%

Middlesex Water Co.'s operating return on assets (operating ROA) has shown some fluctuations over the past five years. In 2023, the operating ROA decreased to 3.17% from 3.92% in 2022. This decline may indicate that the company's operating income generated from its assets decreased relative to its asset base. It is important to further investigate the factors contributing to this decline, such as changes in operating expenses, revenues, or asset utilization.

Comparing the 2023 operating ROA to earlier years, it is below the 2020 and 2019 levels of 3.83% and 3.90%, respectively. However, it is higher than the 2021 level of 3.26%. This suggests that Middlesex Water Co. was less efficient in generating operating income from its assets in 2023 compared to 2020 and 2019, but better than in 2021.

Analyzing trends in operating ROA can provide insights into the company's operational performance and efficiency in utilizing its assets to generate profits. Further analysis and benchmarking against industry peers may help identify opportunities for improvement and ensure sustainable long-term profitability.