Middlesex Water Company (MSEX)

Pretax margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Earnings before tax but after interest (EBT)	US$ in thousands	51,256	32,565	45,669	31,055	34,306
Revenue	US$ in thousands	191,877	166,274	161,157	135,679	133,956
Pretax margin		26.71%	19.59%	28.34%	22.89%	25.61%

December 31, 2024 calculation

Pretax margin = EBT ÷ Revenue
= $51,256K ÷ $191,877K
= 26.71%

The pretax margin of Middlesex Water Company has exhibited fluctuations over the five-year period from December 31, 2020, to December 31, 2024. In 2020, the pretax margin stood at 25.61%, indicating that for every dollar of revenue generated, the company retained approximately $0.2561 before income taxes. The margin decreased to 22.89% by the end of 2021, reflecting a dip in profitability.

However, there was a notable improvement in the pretax margin in 2022, reaching 28.34%, suggesting enhanced operational efficiency and cost management during that period. Subsequently, in 2023, the pretax margin declined to 19.59%, signaling a potential challenge in maintaining profitability levels.

In the most recent year, December 31, 2024, the pretax margin rebounded to 26.71%, showcasing a recovery in profitability for the company. Overall, the trend in the pretax margin reveals variance in the company's ability to control costs, generate revenue, and manage income taxes, highlighting the importance of sustained financial performance analysis and strategic decision-making.