UNITIL Corporation (UTL)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 100.00% | 100.00% | 100.00% | 100.00% | 99.90% |
| Operating profit margin | 9.50% | 8.07% | 7.33% | 8.46% | 8.81% |
| Pretax margin | 6.41% | 5.41% | 4.79% | 5.18% | 5.23% |
| Net profit margin | 4.94% | 4.19% | 3.77% | 3.93% | 3.97% |
UNITIL Corporation has consistently maintained high levels of gross profit margin, operating profit margin, pretax margin, and net profit margin over the years. The company's gross profit margin has been at or near 100% for the past five years, indicating effective cost management and strong pricing power.
In terms of operating profit margin, UNITIL has shown some fluctuations from 8.81% in 2020 to 9.50% in 2024, with a slight dip in 2022. This suggests that the company has been able to manage its operating expenses efficiently while generating reasonable operating profits.
The pretax margin, which measures profitability before taxes, has shown a generally increasing trend from 5.23% in 2020 to 6.41% in 2024. This indicates that UNITIL has been able to improve its profitability at the pre-tax level, possibly through effective revenue generation and cost control measures.
Finally, the net profit margin, which represents the percentage of each dollar of revenue that translates into actual profit, has also increased steadily from 3.97% in 2020 to 4.94% in 2024. This improvement signifies that UNITIL has been successful in converting a higher proportion of its revenue into net income, reflecting strong overall profitability.
Overall, the consistent high margins across different profitability ratios demonstrate UNITIL's ability to effectively manage costs, generate profits, and enhance shareholder value over the years.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 5.05% | 5.21% | 5.06% | 5.05% | 4.83% |
| Return on assets (ROA) | 2.62% | 2.71% | 2.60% | 2.34% | 2.18% |
| Return on total capital | 8.58% | 9.34% | 8.46% | 7.90% | 7.54% |
| Return on equity (ROE) | 9.19% | 9.24% | 8.85% | 8.05% | 8.27% |
UNITIL Corporation's profitability ratios show a positive trend over the years. The Operating return on assets (Operating ROA) increased from 4.83% in December 2020 to 5.05% in December 2021, reaching 5.21% by December 2023, with a slight dip to 5.05% by December 2024. This indicates the company's ability to generate operating profit from its assets improved over the period.
The Return on assets (ROA) also saw an upward trend, starting at 2.18% in December 2020 and increasing to 2.62% by December 2024. This demonstrates UNITIL's efficiency in generating profits relative to its total assets, showing a steady improvement in asset utilization.
Return on total capital increased from 7.54% in December 2020 to 9.34% in December 2023, indicating the company's effective utilization of both equity and debt to generate profits. However, there was a slight decrease to 8.58% by December 2024, suggesting a potential need for more efficient capital management.
Return on equity (ROE) showed a mixed performance, starting at 8.27% in December 2020, decreasing to 8.05% in December 2021, but rebounding to 9.24% by December 2023 before stabilizing at 9.19% by December 2024. This indicates UNITIL's ability to generate profits for its shareholders, reflecting a consistent improvement in shareholder value creation despite some fluctuations.
Overall, UNITIL Corporation's profitability ratios demonstrate a positive trend in operational efficiency and capital utilization, supporting its ability to deliver returns for both asset providers and equity investors over the years.