Middlesex Water Company (MSEX)

Return on assets (ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	31,524	42,429	36,543	38,425	33,888
Total assets	US$ in thousands	1,236,050	1,074,450	1,020,020	976,470	909,878
ROA		2.55%	3.95%	3.58%	3.94%	3.72%

December 31, 2023 calculation

ROA = Net income ÷ Total assets
= $31,524K ÷ $1,236,050K
= 2.55%

Middlesex Water Co.'s return on assets (ROA) has experienced fluctuations over the past five years. In 2023, the ROA decreased to 2.54% from 3.94% in 2022. This decline indicates that the company's ability to generate profit from its assets decreased compared to the previous year.

When comparing the ROA for the last three years (2021-2023), we observe a slight fluctuation but an overall downward trend. The ROA was 3.57% in 2021, increased to 3.94% in 2022, and then decreased to 2.54% in 2023. This trend suggests that Middlesex Water Co. may be facing challenges in maximizing its profitability relative to its asset base.

Comparing the most recent ROA to the figures from 2020 and 2019, we see that the ROA in 2023 is lower than both prior years (3.92% in 2020 and 3.71% in 2019). This indicates a decline in the company's efficiency in generating profits from its assets over the years.

Overall, the trend in Middlesex Water Co.'s ROA shows some inconsistency and decline in recent years, indicating potential issues with asset utilization and profitability that may require further investigation and strategic management.