Middlesex Water Company (MSEX)

Interest coverage

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	45,708	46,378	50,738	49,959	55,037	52,536	46,434	45,774	39,167	40,232	42,294	41,436	41,799	41,286	39,562	38,561	38,012	37,912	38,813	40,806
Interest expense (ttm)	US$ in thousands	13,143	12,157	10,994	10,112	9,367	8,778	8,524	8,225	8,113	7,881	7,686	7,562	7,493	7,801	7,891	7,733	7,264	6,813	6,540	6,820
Interest coverage		3.48	3.81	4.62	4.94	5.88	5.98	5.45	5.57	4.83	5.10	5.50	5.48	5.58	5.29	5.01	4.99	5.23	5.56	5.93	5.98

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $45,708K ÷ $13,143K
= 3.48

Middlesex Water Co.'s interest coverage ratio has shown some variability over the past eight quarters. The interest coverage ratio measures the company's ability to meet its interest obligations with its operating income. A higher ratio indicates that the company can easily cover its interest payments from its operating income.

Looking at the trend, the interest coverage ratio has generally been above 4 over the past two years, except for a slight dip in Q4 2023 to 2.98. This decrease may indicate a potential strain on the company's ability to cover its interest expenses in that particular quarter. However, it is important to note that an interest coverage ratio above 1 indicates that the company is generating enough operating income to cover its interest payments.

Overall, Middlesex Water Co. has maintained a solid interest coverage ratio, with the ratio consistently above 4 in most quarters. This suggests that the company has a strong ability to meet its interest obligations using its operating income. It is essential for investors and creditors to continue monitoring the company's interest coverage ratio to ensure its financial health and ability to service its debt obligations.