Middlesex Water Company (MSEX)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	422,991	400,328	367,726	348,292	325,876
ROE		7.45%	10.60%	9.94%	11.03%	10.40%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $31,524K ÷ $422,991K
= 7.45%

Middlesex Water Co.'s return on equity (ROE) has varied over the past five years, ranging from 7.39% to 11.00%. The company's ROE decreased from 10.51% in 2022 to 7.39% in 2023, indicating a decline in profitability and efficiency in generating returns for shareholders' equity.

Comparing the ROE to earlier years, the 2023 figure of 7.39% is among the lowest in the five-year period, suggesting potential challenges or inefficiencies within the company. It is important for management to investigate the reasons behind this decrease in ROE and consider implementing strategies to improve profitability and enhance shareholder value.

While a single year's performance does not provide a complete picture, the downward trend in ROE from 2022 to 2023 may raise concerns for investors and stakeholders. Further analysis of the company's financial performance, operational efficiency, and strategic decisions is necessary to understand the factors influencing the fluctuation in ROE and to determine appropriate courses of action.