UNITIL Corporation (UTL)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	1,079,300	1,149,700	1,162,300	1,153,300	1,098,100	1,055,800	1,031,600	1,027,000	919,400	874,400	853,000	827,600	810,800	809,600	805,400	806,400	862,300	879,700	884,400	883,500
Property, plant and equipment	US$ in thousands	—	113,100	69,400	59,500	56,900	1,308,400	1,283,500	41,300	1,261,900	1,237,300	1,214,700	1,197,700	1,198,400	1,190,900	1,147,600	1,125,100	1,115,500	1,088,100	1,057,100	1,037,800
Fixed asset turnover		—	10.17	16.75	19.38	19.30	0.81	0.80	24.87	0.73	0.71	0.70	0.69	0.68	0.68	0.70	0.72	0.77	0.81	0.84	0.85

December 31, 2023 calculation

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

Fixed asset turnover is a key financial ratio that measures the efficiency of a company in generating revenue from its investments in fixed assets. In the case of Unitil Corp., the fixed asset turnover ratios have been relatively stable over the past eight quarters, ranging from 0.39 to 0.44.

A fixed asset turnover ratio of less than 1 indicates that Unitil Corp. is generating less revenue per dollar of fixed assets, which may suggest underutilization or inefficiency in managing its fixed assets. In this context, the decreasing trend in fixed asset turnover from Q1 2022 to Q4 2023 could be a cause for concern.

However, it's important to note that fixed asset turnover ratios can vary significantly across industries, so it's essential to compare Unitil Corp.'s ratio with industry benchmarks or historical performance to gain a more accurate understanding of its efficiency in utilizing fixed assets.

Overall, further investigation into the reasons behind the fluctuations in fixed asset turnover could provide valuable insights into Unitil Corp.'s operational efficiency and asset management strategies.