Middlesex Water Company (MSEX)

Solvency ratios

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
Debt-to-assets ratio 0.28 0.29 0.28 0.29 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
Debt-to-capital ratio 0.44 0.44 0.45 0.45 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
Debt-to-equity ratio 0.79 0.80 0.82 0.83 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
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

Middlesex Water Company's solvency ratios provide insights into the company's ability to meet its long-term financial obligations.

1. Debt-to-assets ratio remained relatively stable over the period, ranging between 0.24 and 0.31. This indicates that, on average, around 25% to 31% of the company's assets are financed by debt.

2. Debt-to-capital ratio fluctuated within a narrow range from 0.41 to 0.46. This ratio shows the proportion of debt in the company's capital structure, with the company relying on debt for around 41% to 46% of its total capital.

3. Debt-to-equity ratio varied between 0.68 and 0.85, indicating the extent to which the company's operations are funded by debt compared to equity. The company's debt levels ranged from 68% to 85% of its equity during the period.

4. Financial leverage ratio, averaging between 2.67 to 2.96, reflects the company's financial risk by quantifying the proportion of debt in the company's capital structure compared to equity. The ratio ranged from 2.67 to 2.96 during the period.

Overall, Middlesex Water Company maintained a stable solvency position, with moderate levels of debt in its capital structure relative to assets, capital, equity, and leverage.

Coverage ratios

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
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

The interest coverage ratio of Middlesex Water Company has shown fluctuations over the past few years, ranging from a low of 3.48 at the end of December 2023 to a high of 5.98 at the end of September 2022. This ratio measures the company's ability to cover its interest expenses with its earnings before interest and taxes (EBIT).

A generally acceptable interest coverage ratio is considered to be above 2, as it indicates that the company is generating enough operating income to cover its interest obligations comfortably. Middlesex Water Company's interest coverage ratios have mostly remained above this threshold, indicating a solid ability to meet its interest payments from operating profits.

It is worth noting that the trend in the interest coverage ratio seems to have shown some volatility in recent periods, with decreases noted towards the end of 2023. This could potentially signify a need for the company to closely monitor its interest obligations and ensure that its earnings remain sufficient to cover these expenses in the future.

Overall, while the company has generally maintained adequate interest coverage levels, the recent downward trend in the ratios should be carefully monitored to assess any potential impacts on the company's financial health.