UNITIL Corporation (UTL)

Current ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total current assets	US$ in thousands	188,800	177,100	194,800	159,700	139,300
Total current liabilities	US$ in thousands	228,700	277,300	260,100	173,500	136,100
Current ratio		0.83	0.64	0.75	0.92	1.02

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $188,800K ÷ $228,700K
= 0.83

The current ratio of UNITIL Corporation has shown a declining trend over the past five years, starting at 1.02 in December 31, 2020, and reaching its lowest point at 0.64 in December 31, 2023. This indicates that the company may have faced challenges in meeting its short-term obligations with its current assets during this period.

A current ratio below 1 suggests that the company may have difficulties in paying off its current liabilities with its current assets alone. However, the ratio slightly improved to 0.83 by December 31, 2024, indicating a potential effort to address this issue.

Overall, the downward trend in the current ratio highlights the importance of monitoring the company's liquidity position and effective management of working capital to ensure its ability to meet short-term financial obligations. Further analysis of the underlying factors contributing to this trend would be beneficial to assess the company's financial health accurately.