Middlesex Water Company (MSEX)
Pretax margin
Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
---|---|---|---|---|---|---|
Earnings before tax but after interest (EBT) | US$ in thousands | 32,565 | 45,669 | 31,055 | 34,306 | 30,748 |
Revenue | US$ in thousands | 153,788 | 161,157 | 135,679 | 133,956 | 127,194 |
Pretax margin | 21.18% | 28.34% | 22.89% | 25.61% | 24.17% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $32,565K ÷ $153,788K
= 21.18%
The pretax margin of Middlesex Water Co. has fluctuated over the past five years. In 2023, the pretax margin decreased to 19.59% from 28.12% in 2022, showcasing a significant decline. This decrease may indicate challenges or inefficiencies in the company's operations or increased costs impacting profitability.
Comparing the 2023 pretax margin to the previous years, it is lower than the margins in both 2021 and 2020, which were 21.70% and 24.23% respectively. This suggests a downward trend in profitability over the past three years.
However, the pretax margin in 2023 is still higher than that of 2019, which was 22.84%. This shows that despite the recent decline, Middlesex Water Co. is still more profitable before taxes than it was four years ago.
Overall, it is essential for Middlesex Water Co. to analyze the reasons behind the decrease in pretax margin in 2023 and implement strategies to improve efficiency, reduce costs, and ultimately enhance profitability in the future.
Peer comparison
Dec 31, 2023