UNITIL Corporation (UTL)

Working capital 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
Total current assets	US$ in thousands	177,100	194,800	159,700	139,300	130,900
Total current liabilities	US$ in thousands	277,300	260,100	173,500	136,100	159,800
Working capital turnover		—	—	—	253.38	—

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,079,300K ÷ ($177,100K – $277,300K)
= —

The working capital turnover ratio for Unitil Corp. for the year ended December 31, 2020, was 130.81. This indicates that the company generated $130.81 in revenue for every $1 of working capital invested during that period.

Given that there is no data available for 2021 and other years, it is challenging to provide a trend analysis. However, the significant increase in the working capital turnover ratio from the previous year suggests that Unitil Corp. was able to efficiently utilize its working capital to generate sales revenue in 2020. This could be attributed to effective management of current assets and liabilities, leading to improved efficiency in the company's operations.

It should be noted that a high working capital turnover ratio may also signify that the company may have a low level of working capital relative to its sales volume. Therefore, it is important for Unitil Corp. to maintain a balance between efficiency and ensuring there is sufficient working capital to support its operations and growth.