UNITIL Corporation (UTL)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| 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 |
| Current ratio | 0.64 | 0.75 | 0.92 | 1.02 | 0.82 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $177,100K ÷ $277,300K
= 0.64
The current ratio of Unitil Corp. has experienced a declining trend over the past five years. The ratio stood at 0.64 as of December 31, 2023, down from 0.75 in the previous year and significantly lower than the ratios of 0.92, 1.02, and 0.82 in 2021, 2020, and 2019, respectively.
A current ratio below 1 typically indicates that a company may have difficulty meeting its short-term obligations with its current assets alone. Thus, the decreasing trend in Unitil Corp.'s current ratio may raise concerns about its liquidity position and ability to cover immediate liabilities.
It is advisable for stakeholders and investors to monitor the company's liquidity position closely and assess the effectiveness of its working capital management strategies to ensure it can meet its short-term financial obligations adequately.
Peer comparison
Dec 31, 2023