Middlesex Water Company (MSEX)

Return on equity (ROE)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Net income (ttm)	US$ in thousands	44,351	41,312	36,983	36,338	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
Total stockholders’ equity	US$ in thousands	445,263	441,935	432,878	427,692	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
ROE		9.96%	9.35%	8.54%	8.50%	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%

December 31, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $44,351K ÷ $445,263K
= 9.96%

Middlesex Water Company's Return on Equity (ROE) has shown some fluctuations over the past few years. From March 31, 2020, to December 31, 2024, ROE ranged between 7.45% and 11.10%.

The ROE was relatively stable in the range of 10.62% to 11.10% during the first three quarters of 2020, indicating efficient utilization of equity to generate profits. However, there was a slight dip in the ROE in December 2020 to 11.03%, which was followed by some variability in the range of 10.32% to 11.04% throughout 2021 and 2022.

In the subsequent quarters of 2023 and 2024, the ROE experienced a notable decline, dropping to 7.45% by December 31, 2023, and then recovering slightly to 9.96% by December 31, 2024.

The decreasing trend in ROE towards the end of 2023 raises concerns about the company's ability to generate profits relative to the shareholders' equity. Analyzing the reasons behind this decline and considering strategies to improve ROE could be essential for Middlesex Water Company to enhance its profitability and create more value for its shareholders.