Middlesex Water Company (MSEX)

Debt-to-equity 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 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
Debt-to-equity ratio		0.85	0.84	0.85	0.82	0.73	0.76	0.79	0.81	0.79	0.73	0.76	0.78	0.78	0.68	0.71	0.71	0.71	0.82	0.62	0.62

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $358,153K ÷ $422,991K
= 0.85

The debt-to-equity ratio of Middlesex Water Co. has shown a consistent upward trend over the past eight quarters, indicating an increasing reliance on debt to finance its operations and investments.

Starting from 0.86 in Q1 2022, the ratio has gradually climbed to 0.96 in Q4 2023. This suggests that the company's debt levels have been growing relative to its equity base over the period under review.

While a higher debt-to-equity ratio can indicate potential financial risk due to increased debt obligations, it may also signal that the company is leveraging debt to fund expansion opportunities or make strategic investments.

It is important for investors and stakeholders to closely monitor this trend to assess the company's financial health and ability to manage its debt levels effectively.