Middlesex Water Company (MSEX)

Return on total capital

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	53,210	45,708	55,036	39,169	41,799
Long-term debt	US$ in thousands	352,822	358,153	290,280	290,280	273,244
Total stockholders’ equity	US$ in thousands	445,263	422,991	400,328	367,726	348,292
Return on total capital		6.67%	5.85%	7.97%	5.95%	6.73%

December 31, 2024 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $53,210K ÷ ($352,822K + $445,263K)
= 6.67%

Middlesex Water Company's return on total capital has fluctuated over the past five years, with values ranging from 5.85% to 7.97%. In 2020, the return on total capital was 6.73%, followed by a slight decrease to 5.95% in 2021. The company experienced a notable improvement in 2022, reaching a return on total capital of 7.97%. However, this was followed by a decline to 5.85% in 2023. By the end of 2024, the return on total capital had climbed back to 6.67%.

These fluctuations in return on total capital indicate variability in the company's ability to generate profits relative to the total capital employed. It is essential for Middlesex Water Company to monitor and analyze the factors contributing to these changes to ensure sustained profitability and efficient utilization of capital resources.