Middlesex Water Company (MSEX)

Solvency ratios

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
Debt-to-assets ratio 0.29 0.28 0.31 0.30 0.27 0.28 0.29 0.29 0.28 0.26 0.27 0.28 0.28 0.24 0.25 0.25 0.25 0.26 0.20 0.20
Debt-to-capital ratio 0.46 0.46 0.46 0.45 0.42 0.43 0.44 0.45 0.44 0.42 0.43 0.44 0.44 0.41 0.41 0.42 0.41 0.45 0.38 0.38
Debt-to-equity ratio 0.85 0.84 0.85 0.82 0.73 0.76 0.79 0.81 0.79 0.73 0.76 0.78 0.78 0.68 0.71 0.71 0.71 0.82 0.62 0.62
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

The solvency ratios of Middlesex Water Co. indicate the company's ability to meet its long-term financial obligations.

The debt-to-assets ratio has been relatively stable over the past eight quarters, ranging between 0.32 and 0.35. This ratio suggests that approximately 32% to 35% of the company's total assets are financed by debt.

Similarly, the debt-to-capital ratio has also remained fairly consistent, staying around 0.47 to 0.49 during the same period. This ratio indicates that about 47% to 49% of the company's capital structure is composed of debt.

The debt-to-equity ratio has shown a slight increasing trend over the quarters, indicating that the company has been relying more on debt financing relative to equity. The ratio has increased from 0.86 in Q1 2022 to 0.96 in Q4 2023, suggesting that the proportion of debt to equity has risen from 86% to 96% over this period.

Lastly, the financial leverage ratio has also shown an uptrend, rising from 2.66 in Q1 2022 to 2.91 in Q4 2023. This suggests that the company's financial leverage has increased, meaning that a higher proportion of the company's assets are funded through debt compared to equity.

Overall, Middlesex Water Co.'s solvency ratios indicate a consistent level of debt utilization, with a slightly increasing reliance on debt financing over the quarters, potentially increasing the company's financial risk.

Coverage ratios

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
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

Interest coverage is a financial ratio that indicates a company's ability to cover its interest expenses with its operating income. A higher interest coverage ratio suggests that the company is more capable of meeting its interest obligations from its operating earnings.

Looking at the historical trend of Middlesex Water Co.'s interest coverage ratio, we observe a generally decreasing pattern from Q1 2023 to Q4 2022. The interest coverage ratio has declined from 4.18 in Q1 2023 to 2.98 in Q4 2023. This downward trend may raise concerns about the company's ability to comfortably cover its interest expenses in the future.

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. Middlesex Water Co. consistently maintained its interest coverage ratio above 1 in all the quarters analyzed, indicating that the company has been able to meet its interest obligations.

However, the downward trend in the interest coverage ratio warrants further monitoring to ensure that Middlesex Water Co. can continue to service its debt obligations comfortably. Investors and stakeholders should keep an eye on future developments in the company's financial performance to assess its ability to manage its interest expenses effectively.