Middlesex Water Company (MSEX)

Return on total capital

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	45,708	46,378	50,738	49,959	55,037	52,536	46,434	45,774	39,167	40,232	42,294	41,436	41,799	41,286	39,562	38,561	38,012	37,912	38,813	40,806
Long-term debt	US$ in thousands	358,153	354,276	350,446	329,636	290,280	301,238	305,411	306,518	290,280	266,483	272,504	272,664	273,244	234,489	237,939	234,789	230,777	228,272	163,574	158,422
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
Return on total capital		5.85%	5.99%	6.66%	6.82%	7.97%	7.51%	6.72%	6.69%	5.95%	6.38%	6.72%	6.64%	6.73%	7.13%	6.90%	6.83%	6.83%	7.49%	9.04%	9.83%

December 31, 2023 calculation

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

Middlesex Water Co.'s return on total capital has shown some fluctuations over the past eight quarters. The return on total capital ranged from a low of 4.70% in Q4 2023 to a high of 5.50% in Q4 2022. Overall, the company's return on total capital has been relatively stable, with the highest returns achieved in Q4 2022 and Q1 2023.

The return on total capital measures the company's ability to generate profits from both its debt and equity capital. A higher return on total capital indicates that the company is effectively utilizing its resources to generate profits for its investors. Middlesex Water Co. has demonstrated a consistent ability to generate returns on its total capital, albeit with some minor fluctuations.

It is essential for investors and stakeholders to monitor the company's return on total capital over time to assess its financial performance and efficiency in capital utilization. Additionally, comparing Middlesex Water Co.'s return on total capital with industry benchmarks and peers can provide further insights into its competitive position and financial health. Overall, the company's return on total capital performance reflects its ability to generate profits from its invested capital.