Middlesex Water Company (MSEX)

Debt-to-assets ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	358,153	290,280	290,280	273,244	230,777
Total assets	US$ in thousands	1,236,050	1,074,450	1,020,020	976,470	909,878
Debt-to-assets ratio		0.29	0.27	0.28	0.28	0.25

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $358,153K ÷ $1,236,050K
= 0.29

The debt-to-assets ratio of Middlesex Water Co. has been relatively stable over the past five years, ranging from 0.28 to 0.34. This ratio indicates the proportion of the company's assets that are financed through debt. A lower ratio suggests lower financial risk as it shows that a smaller portion of the company's assets is funded by debt.

In the case of Middlesex Water Co., the trend shows a slight increase in the ratio from 0.28 in 2019 to 0.34 in 2022, indicating a higher reliance on debt financing during that period. However, in 2023, the ratio decreased to 0.33, which may suggest a more conservative approach towards debt financing or potentially increased asset base.

Overall, the debt-to-assets ratio of Middlesex Water Co. at around 0.33 indicates a moderate level of debt relative to its total assets. This suggests a balanced approach to capital structure, allowing the company to efficiently fund its operations and growth while managing financial risk.