UNITIL Corporation (UTL)

Operating return on assets (Operating ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Operating income	US$ in thousands	87,100	80,500	77,800	71,400	73,100
Total assets	US$ in thousands	1,670,400	1,590,400	1,540,300	1,477,900	1,370,800
Operating ROA		5.21%	5.06%	5.05%	4.83%	5.33%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $87,100K ÷ $1,670,400K
= 5.21%

Unitil Corp.'s operating return on assets (ROA) has been relatively stable over the past five years, ranging from 4.83% in 2020 to 5.33% in 2019. The operating ROA for 2023 improved slightly to 5.21%, compared to 5.06% in 2022. This indicates that Unitil has been generating operating income more efficiently relative to its total assets in recent years.

A higher operating ROA suggests that Unitil is effectively utilizing its assets to generate operating profits, which is a positive indicator of operational efficiency. Despite some fluctuations, the consistent performance suggests that Unitil has been able to maintain a reasonably effective management of its assets to generate operating income.

Overall, the trend in Unitil Corp.'s operating ROA over the past five years implies a stable and efficient operational performance, with a slight improvement in 2023 compared to the previous year. This indicates that the company has been able to effectively generate operating income relative to its asset base.