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.