Middlesex Water Company (MSEX)

Financial leverage 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
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
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
Financial leverage ratio		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	2.79	3.19	3.04	3.05

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,236,050K ÷ $422,991K
= 2.92

Middlesex Water Co.'s financial leverage ratio has shown some fluctuation over the past eight quarters. The ratio ranged between 2.66 and 2.95 during this period. This ratio indicates that for every dollar of equity, the company is using approximately between $2.66 and $2.95 of debt to finance its operations and growth.

Overall, the financial leverage ratio has averaged around 2.77 over the past two years, suggesting that the company relies moderately on debt to fund its activities. It is essential for stakeholders to monitor this ratio closely as higher leverage can amplify both returns and risks for the company. The decreasing trend from Q4 2022 to Q1 2023, followed by a slight increase, may indicate shifts in the company's debt management strategy. It is important to assess the underlying reasons for these fluctuations to understand the potential impact on the company's financial health and performance.