Middlesex Water Company (MSEX)

Debt-to-assets ratio

		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
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 assets	US$ in thousands	1,236,050	1,243,420	1,127,590	1,098,920	1,074,450	1,064,670	1,038,020	1,074,450	1,020,020	1,029,590	1,014,980	986,210	976,470	959,834	950,870	935,316	909,878	887,353	807,571	782,973
Debt-to-assets ratio		0.29	0.28	0.31	0.30	0.27	0.28	0.29	0.29	0.28	0.26	0.27	0.28	0.28	0.24	0.25	0.25	0.25	0.26	0.20	0.20

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 eight quarters, ranging from 0.32 to 0.35. This ratio indicates that, on average, approximately 33% to 35% of the company's total assets are financed by debt.

A ratio of 0.33 in Q4 2023 suggests that the company has $0.33 of debt for every $1 of assets. This indicates a moderate level of leverage, implying that the company relies moderately on debt to finance its operations and investments.

The consistency of the debt-to-assets ratio around the 0.33 to 0.35 range indicates that Middlesex Water Co. has maintained a prudent balance between debt and assets over the past year. While a higher ratio may suggest higher financial risk due to increased reliance on debt, the company's ratios have remained relatively stable, indicating a consistent approach to capital structure management.

Overall, the debt-to-assets ratio analysis suggests that Middlesex Water Co. has been managing its debt levels effectively, maintaining a moderate level of leverage to support its business activities.