Middlesex Water Company (MSEX)

Return on total capital

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	63,199	62,112	56,897	51,737	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
Long-term debt	US$ in thousands	352,822	352,282	355,975	356,960	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
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
Return on total capital		7.92%	7.82%	7.21%	6.59%	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%

December 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $63,199K ÷ ($352,822K + $445,263K)
= 7.92%

Middlesex Water Company's return on total capital has shown some fluctuation over the periods analyzed. The return on total capital varied between 5.85% and 7.97% during the timeframe.

The return on total capital peaked at 7.97% as of December 31, 2022, indicating the company was generating substantial returns relative to its total capital employed. However, the ratio dipped to 5.85% by December 31, 2023, indicating a decrease in the company's ability to generate returns on its total capital during that period.

Overall, Middlesex Water Company's return on total capital has exhibited some volatility, with fluctuations observed across different reporting periods. This metric is essential in evaluating the company's efficiency in generating returns for its capital providers and can provide insights into the company's overall financial performance and capital allocation strategies.