Middlesex Water Company (MSEX)

Return on assets (ROA)

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Net income (ttm)	US$ in thousands	31,524	32,930	37,231	36,198	42,430	42,496	39,681	41,736	36,543	37,613	38,874	37,664	38,425	38,189	36,571	35,004	33,888	32,810	33,981	34,510
Total assets	US$ in thousands	1,236,050	1,243,420	1,127,590	1,098,920	1,074,450	1,064,670	1,038,020	1,074,450	1,020,020	1,029,590	1,014,980	986,210	976,470	959,834	950,870	935,316	909,878	887,353	807,571	782,973
ROA		2.55%	2.65%	3.30%	3.29%	3.95%	3.99%	3.82%	3.88%	3.58%	3.65%	3.83%	3.82%	3.94%	3.98%	3.85%	3.74%	3.72%	3.70%	4.21%	4.41%

December 31, 2023 calculation

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

Middlesex Water Co.'s Return on Assets (ROA) has exhibited fluctuations over the past eight quarters, ranging from 2.54% to 4.12%. The ROA peaked at 4.12% in Q1 2022 and hit its lowest point at 2.54% in Q4 2023. Overall, the ROA has shown a slight downward trend from the highest point in early 2022.

The decrease in ROA over time could indicate a decline in the company's profitability relative to its assets. It is essential to investigate the reasons behind this trend, which could be influenced by various factors such as changes in revenue, expenses, or asset utilization efficiency.

Comparing the ROA to industry averages or competitors' ratios could provide further insights into Middlesex Water Co.'s performance relative to its peers. Additionally, monitoring the trend of ROA over future quarters will be crucial to track the company's financial health and profitability.