Middlesex Water Company (MSEX)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	422,991	419,583	411,477	403,355	400,328	398,075	385,567	377,882	367,726	364,424	357,182	350,932	348,292	344,190	335,457	329,484	325,876	277,879	265,717	256,575
ROE		7.45%	7.85%	9.05%	8.97%	10.60%	10.68%	10.29%	11.04%	9.94%	10.32%	10.88%	10.73%	11.03%	11.10%	10.90%	10.62%	10.40%	11.81%	12.79%	13.45%

December 31, 2023 calculation

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

The return on equity (ROE) for Middlesex Water Co. has shown a generally decreasing trend over the past eight quarters. The ROE decreased from 10.95% in Q1 2022 to 7.39% in Q4 2023. This decline suggests that the company's profitability in generating returns from shareholders' equity has been weakening over time.

While the ROE fluctuated slightly during the period, it remained below the levels recorded in the earlier quarters of 2022. The highest ROE was 10.95% in Q1 2022, and the lowest was 7.39% in Q4 2023. This indicates potential challenges in effectively utilizing the company's equity to generate profits for shareholders.

Investors and stakeholders may want to further investigate the factors contributing to the declining ROE trend to assess the company's performance and sustainability in the long term. It is essential to closely monitor whether Middlesex Water Co. can improve its profitability and efficiency in utilizing equity capital to enhance shareholder value.