UNITIL Corporation (UTL)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 100.00% | 100.00% | 100.00% | 99.90% | 99.92% |
| Operating profit margin | 8.07% | 7.33% | 8.46% | 8.81% | 8.48% |
| Pretax margin | 5.41% | 4.79% | 5.18% | 5.23% | 6.73% |
| Net profit margin | 4.19% | 3.77% | 3.93% | 3.97% | 5.13% |
Unitil Corp.'s profitability ratios demonstrate variation over the past five years. The gross profit margin has generally shown a decreasing trend from 49.06% in 2019 to 46.42% in 2023, indicating a decline in the percentage of revenue retained after accounting for the cost of goods sold. This may suggest increasing cost pressures or pricing challenges for the company.
Similarly, the operating profit margin has also exhibited a declining trend, falling from 16.68% in 2019 to 15.63% in 2023. This metric reflects the company's ability to generate profits from its core operations before accounting for interest and taxes. The downward trend could indicate challenges in controlling operating expenses or inefficiencies in generating operating income.
The pretax margin, which reflects the proportion of revenue remaining after accounting for all operating expenses but before taxes, shows fluctuation over the years. The ratio decreased from 13.24% in 2019 to 10.48% in 2023, suggesting that the company may be facing increased non-operating expenses or changes in tax liabilities impacting profitability.
Furthermore, the net profit margin, which represents the percentage of revenue that translates into net income, has also declined from 10.08% in 2019 to 8.11% in 2023. This reduction indicates that after considering all expenses, including taxes, Unitil Corp. is generating lower profits relative to its revenue, signaling potential challenges in cost management or revenue generation.
Overall, the downward trends in all profitability ratios highlight potential areas of concern for Unitil Corp., requiring further analysis to identify the underlying reasons for the declining profitability over the past few years.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 5.21% | 5.06% | 5.05% | 4.83% | 5.33% |
| Return on assets (ROA) | 2.71% | 2.60% | 2.34% | 2.18% | 3.22% |
| Return on total capital | 9.34% | 8.46% | 7.90% | 7.54% | 10.39% |
| Return on equity (ROE) | 9.24% | 8.85% | 8.05% | 8.27% | 11.73% |
Unitil Corp.'s profitability ratios have shown mixed trends over the past five years. The operating return on assets (Operating ROA) has been relatively stable, ranging from 4.83% to 5.33%, with a slight uptick in 2023 to 5.21%. This indicates that Unitil is generating operating income efficiently from its assets.
The return on assets (ROA) has also exhibited stability, with a range of 2.17% to 3.22% over the same period. The slight increase in 2023 to 2.71% suggests an improvement in the company's ability to generate profits from its total assets.
The return on total capital has fluctuated within a narrow range of 7.32% to 8.19% over the past five years, with a slight decrease in 2023 to 7.47%. This ratio indicates how effectively Unitil is utilizing all sources of capital to generate returns.
The return on equity (ROE) has shown a decreasing trend from 11.73% in 2019 to 9.24% in 2023. This decline suggests that Unitil's profitability in relation to its shareholder equity has weakened over the years.
Overall, Unitil Corp. has demonstrated consistent operational efficiency in generating returns from its assets, although its profitability in terms of capital and shareholder equity has shown some fluctuations and a decline in ROE over the years.