Middlesex Water Company (MSEX)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,255,170 | 1,236,050 | 1,074,450 | 1,020,020 | 976,470 |
| Total stockholders’ equity | US$ in thousands | 445,263 | 422,991 | 400,328 | 367,726 | 348,292 |
| Financial leverage ratio | 2.82 | 2.92 | 2.68 | 2.77 | 2.80 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,255,170K ÷ $445,263K
= 2.82
The financial leverage ratio of Middlesex Water Company has shown some fluctuations over the past five years. As of December 31, 2020, the ratio stood at 2.80, indicating that the company had significant reliance on debt to finance its operations and investments. However, by December 31, 2021, the ratio decreased slightly to 2.77, suggesting a potential reduction in debt levels relative to assets.
In the following year, by December 31, 2022, the financial leverage ratio further declined to 2.68, signaling a possible improvement in the company's capital structure and reduced dependency on debt financing. The ratio then increased to 2.92 by December 31, 2023, which may indicate a shift towards higher debt levels compared to the previous year.
Lastly, as of December 31, 2024, the financial leverage ratio decreased to 2.82, showing a slight retreat from the peak in 2023. Overall, the fluctuation in Middlesex Water Company's financial leverage ratio over the five-year period suggests varying levels of debt utilization and capital structure adjustments, which could impact the company's financial risk and stability.
Peer comparison
Dec 31, 2024