UNITIL Corporation (UTL)

Current ratio

		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
Total current assets	US$ in thousands	177,100	156,400	161,300	197,900	194,800	150,600	139,100	163,100	159,700	121,000	114,200	132,700	139,300	117,300	109,600	125,800	130,900	107,400	107,400	133,900
Total current liabilities	US$ in thousands	277,300	243,400	238,000	253,500	260,100	193,600	155,000	157,700	173,500	126,600	133,300	122,900	136,100	98,200	149,300	147,100	159,800	144,400	156,000	164,800
Current ratio		0.64	0.64	0.68	0.78	0.75	0.78	0.90	1.03	0.92	0.96	0.86	1.08	1.02	1.19	0.73	0.86	0.82	0.74	0.69	0.81

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 shown a downward trend over the past eight quarters. It decreased from 1.03 in Q1 2022 to 0.64 in Q4 2023. This indicates a decline in the company's ability to cover its short-term liabilities with its current assets.

A current ratio below 1 suggests that the company may have difficulty meeting its short-term obligations, as its current liabilities surpass its current assets. Unitil Corp. should closely monitor and manage its liquidity position to ensure it has enough resources to meet its short-term debt obligations.

The decreasing trend in the current ratio could also raise concerns about the company's financial health and operational efficiency. Management may need to assess its working capital management strategies and consider actions to improve liquidity, such as reducing short-term debt or increasing current assets.

Overall, the declining current ratio of Unitil Corp. indicates a potential risk in its short-term solvency and highlights the importance of closely monitoring and improving liquidity management practices.