Middlesex Water Company (MSEX)

Interest coverage

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	63,199	62,112	56,897	51,737	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
Interest expense (ttm)	US$ in thousands	13,556	14,500	14,607	13,817	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
Interest coverage		4.66	4.28	3.90	3.74	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

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $63,199K ÷ $13,556K
= 4.66

Middlesex Water Company's interest coverage ratio has shown fluctuation over the past few years. The ratio measures the company's ability to meet its interest payments on outstanding debt and is calculated by dividing operating income by interest expense.

From March 31, 2020, to December 31, 2022, the interest coverage ratio improved steadily from 4.99 to 5.88, indicating a stronger ability to cover interest payments. However, there was a slight dip in the ratio to 4.94 by March 31, 2023, followed by a more pronounced decrease to 3.48 by December 31, 2023.

In the most recent period, the interest coverage ratio has shown some recovery, increasing to 4.66 by December 31, 2024. Despite the fluctuations observed, Middlesex Water Company generally maintained a satisfactory level of interest coverage over the period in review. It is essential for the company to monitor and manage its interest coverage ratio effectively to ensure financial stability and meet its debt obligations in the long term.