Middlesex Water Company (MSEX)

Financial leverage ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Total assets	US$ in thousands	1,255,170	1,229,620	1,274,640	1,250,100	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
Total stockholders’ equity	US$ in thousands	445,263	441,935	432,878	427,692	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
Financial leverage ratio		2.82	2.78	2.94	2.92	2.92	2.96	2.74	2.72	2.68	2.67	2.69	2.84	2.77	2.83	2.84	2.81	2.80	2.79	2.83	2.84

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 fluctuations over the past few years. The ratio has ranged between 2.67 to 2.96, indicating the company's reliance on debt to finance its operations and investments. A higher financial leverage ratio suggests a higher level of debt relative to equity, which can amplify returns in good times but also increase the risk of financial distress in challenging periods.

Middlesex Water Company's financial leverage ratio peaked at 2.96 as of September 30, 2023, which may indicate a period of increased debt utilization. However, it decreased to 2.67 by September 30, 2022, before rising again. Overall, the company's financial leverage ratio has shown some level of volatility, highlighting the importance of monitoring the company's debt management strategies and their impact on financial stability.