Middlesex Water Company (MSEX)

Return on total capital

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	45,708	55,036	39,169	41,799	38,012
Long-term debt	US$ in thousands	358,153	290,280	290,280	273,244	230,777
Total stockholders’ equity	US$ in thousands	422,991	400,328	367,726	348,292	325,876
Return on total capital		5.85%	7.97%	5.95%	6.73%	6.83%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $45,708K ÷ ($358,153K + $422,991K)
= 5.85%

The return on total capital for Middlesex Water Co. has shown a declining trend from 6.08% in 2019 to 4.70% in 2023. This indicates that the company's ability to generate profits from its total capital has weakened over the years. The decrease in return on total capital could be a concern for stakeholders as it suggests that the company may not be utilizing its capital as efficiently as before. Further analysis of the company's financial performance and investment decisions may be warranted to understand the reasons behind this decline and identify potential areas for improvement.