Middlesex Water Company (MSEX)

Middlesex Water Company's solvency ratios indicate the company's ability to meet its long-term financial obligations.

- Debt-to-assets ratio has remained relatively stable around 0.28, indicating that approximately 28% of the company's assets are financed by debt.

- Debt-to-capital ratio shows a similar trend, hovering around 0.44, suggesting that debt comprises around 44% of the company's capital structure.

- Debt-to-equity ratio has fluctuated slightly, with a low of 0.73 in 2022 and a high of 0.85 in 2023. This ratio reveals that debt accounts for around 73% to 85% of the company's equity.

- Financial leverage ratio has ranged from 2.68 to 2.92, implying that the company's assets are leveraged between 2.68 to 2.92 times by debt.

Overall, Middlesex Water Company has maintained a relatively conservative approach to debt financing, as indicated by these solvency ratios.

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Coverage ratios

The interest coverage ratio for Middlesex Water Company shows a fluctuating trend over the five-year period from December 31, 2020, to December 31, 2024. The ratio peaked at 5.88 on December 31, 2022, indicating the company's ability to cover its interest expenses nearly six times with its operating income. However, there was a significant decline in the interest coverage ratio to 3.48 on December 31, 2023, suggesting a potential strain on the company's ability to meet its interest obligations through its earnings. Overall, the interest coverage ratio for Middlesex Water Company demonstrates some variability, highlighting the importance of monitoring the company's profitability and financial health.