UNITIL Corporation (UTL)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	US$ in thousands	6,500	9,000	6,500	6,000	5,200
Short-term investments	US$ in thousands	—	—	—	—	—
Receivables	US$ in thousands	84,400	91,800	74,300	66,900	61,200
Total current liabilities	US$ in thousands	277,300	260,100	173,500	136,100	159,800
Quick ratio		0.33	0.39	0.47	0.54	0.42

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($6,500K + $—K + $84,400K) ÷ $277,300K
= 0.33

The quick ratio of Unitil Corp. has exhibited a decreasing trend over the past five years, declining from 0.75 in 2019 to 0.57 in 2023. This indicates that the company's ability to meet its short-term obligations with its most liquid assets has weakened over time.

A quick ratio below 1.0 suggests that Unitil may have difficulty in paying off its current liabilities using its quick assets alone. The downward trend in the quick ratio raises concerns about the company's liquidity position and ability to cover its short-term financial obligations.

Further analysis and evaluation of Unitil Corp.'s liquidity management strategies, operational efficiency, and potential changes in its current asset composition may be necessary to address the declining trend in the quick ratio and mitigate liquidity risks.