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