UNITIL Corporation (UTL)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	1,079,300	1,098,100	919,400	810,800	862,300
Property, plant and equipment	US$ in thousands	—	56,900	1,261,900	1,198,400	1,115,500
Fixed asset turnover		—	19.30	0.73	0.68	0.77

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,079,300K ÷ $—K
= —

Unitil Corp.'s fixed asset turnover ratio has shown some fluctuations over the past five years. The ratio measures the efficiency with which the company is utilizing its fixed assets to generate sales revenue. A higher ratio typically indicates more effective asset utilization.

From 2019 to 2023, the fixed asset turnover ratio ranged from 0.35 to 0.42, with a peak in 2022 at 0.42. However, in 2023, the ratio decreased to 0.39. This indicates that in 2023, Unitil Corp. generated $0.39 in sales revenue for every dollar invested in fixed assets.

While the ratio has varied slightly, it has generally remained within a narrow range with no significant upward or downward trend. It is essential for Unitil Corp. to continuously monitor and manage its fixed asset utilization to ensure optimal efficiency and effectiveness in generating revenue. Further analysis of the company's operational and strategic initiatives may provide insights into the factors influencing the fluctuations in the fixed asset turnover ratio.