UNITIL Corporation (UTL)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 21.00 | 27.71 | 34.58 | 36.22 | 0.09 |
| Receivables turnover | 11.71 | 12.79 | 11.96 | 12.37 | 12.12 |
| Payables turnover | 6.00 | 7.84 | 5.75 | 5.94 | 0.02 |
| Working capital turnover | — | — | — | — | 253.38 |
The activity ratios of UNITIL Corporation provide insights into how efficiently the company manages its assets and liabilities to generate sales.
1. Inventory Turnover:
- UNITIL's inventory turnover has shown a significant improvement over the years, increasing from 0.09 in 2020 to 21.00 in 2024. This indicates that the company is able to sell and replace its inventory more frequently in recent years, which can lead to lower inventory holding costs and potentially higher profitability.
2. Receivables Turnover:
- The receivables turnover for UNITIL remained relatively stable over the years, ranging from 11.71 to 12.79. This suggests that the company is efficient in collecting payments from its customers, with a consistent trend in managing its accounts receivables.
3. Payables Turnover:
- UNITIL's payables turnover also increased steadily from 0.02 in 2020 to 6.00 in 2024. This indicates that the company is taking longer to pay its suppliers, which can be beneficial for managing cash flow and working capital effectively.
4. Working Capital Turnover:
- The data for working capital turnover was not provided for years beyond 2020, suggesting that this ratio might not be applicable or meaningful for UNITIL's financial analysis in recent years.
Overall, the improving inventory turnover and payables turnover ratios indicate better operational efficiency and working capital management for UNITIL Corporation, which are positive signs for its financial performance and stability.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 17.38 | 13.17 | 10.56 | 10.08 | 3,878.12 |
| Days of sales outstanding (DSO) | days | 31.16 | 28.54 | 30.51 | 29.50 | 30.12 |
| Number of days of payables | days | 60.83 | 46.54 | 63.52 | 61.40 | 15,147.50 |
Unitil Corporation's Days of Inventory on Hand (DOH) have decreased significantly over the years, indicating an improvement in inventory management efficiency. In 2020, the company had an unusually high DOH of 3,878.12 days, which has since decreased to 17.38 days by the end of 2024. This suggests that Unitil has been able to reduce the amount of time it takes to sell its inventory, leading to a more streamlined inventory turnover process.
The Days of Sales Outstanding (DSO) for Unitil have remained relatively stable over the years, fluctuating between 28.54 days and 31.16 days. This suggests that the company has been able to efficiently collect payments from customers within a consistent timeframe, maintaining a steady accounts receivable turnover.
In terms of Number of Days of Payables, Unitil had an exceptionally high figure of 15,147.50 days at the end of 2020, which has since decreased to 60.83 days by the end of 2024. This substantial reduction indicates that the company has been able to manage its payables more effectively, possibly negotiating better payment terms with suppliers and improving cash flow management.
Overall, the trend in Unitil Corporation's activity ratios reflects a positive trajectory towards enhanced operational efficiency and better working capital management over the years.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 19.30 | 0.73 | 0.68 |
| Total asset turnover | 0.53 | 0.65 | 0.69 | 0.60 | 0.55 |
The analysis of UNITIL Corporation's long-term activity ratios reveals the following trends:
1. Fixed Asset Turnover:
- In 2020, the fixed asset turnover ratio was 0.68, indicating that the company generated $0.68 in revenue for every dollar invested in fixed assets.
- The ratio slightly improved to 0.73 in 2021, suggesting a better utilization of fixed assets to generate revenue.
- There was a significant spike in the ratio to 19.30 in 2022, indicating a substantial increase in revenue generation efficiency from fixed assets.
- However, the data for 2023 and 2024 is unavailable.
2. Total Asset Turnover:
- In 2020, the total asset turnover ratio was 0.55, showing that the company generated $0.55 in revenue for every dollar of total assets.
- The ratio improved to 0.60 in 2021, indicating a better utilization of total assets to generate revenue.
- It further increased to 0.69 in 2022, suggesting enhanced efficiency in utilizing total assets for revenue generation.
- There was a slight decrease in the ratio to 0.65 in 2023, possibly indicating a slight decline in the efficiency of asset utilization.
- In 2024, the total asset turnover ratio decreased to 0.53, which could be a cause for concern as it signifies a lower revenue generated per dollar of total assets employed.
Overall, the analysis of UNITIL Corporation's long-term activity ratios indicates fluctuations in the efficiency of asset utilization for revenue generation over the years. The company experienced improvements in certain years, particularly in 2022, but also encountered declines in efficiency in other years. Monitoring these ratios will be essential for assessing the company's operational performance and asset management strategies.