UNITIL Corporation (UTL)

Operating return on assets (Operating ROA)

		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
Operating income (ttm)	US$ in thousands	87,100	84,900	84,100	84,200	80,500	81,300	81,300	80,200	77,800	76,700	76,900	77,200	71,400	68,100	70,700	71,900	73,100	73,300	73,600	71,900
Total assets	US$ in thousands	1,670,400	1,620,200	1,595,300	1,614,700	1,590,400	1,578,900	1,547,100	1,552,300	1,540,300	1,509,000	1,477,100	1,477,000	1,477,900	1,423,900	1,384,500	1,378,400	1,370,800	1,309,700	1,279,300	1,290,200
Operating ROA		5.21%	5.24%	5.27%	5.21%	5.06%	5.15%	5.25%	5.17%	5.05%	5.08%	5.21%	5.23%	4.83%	4.78%	5.11%	5.22%	5.33%	5.60%	5.75%	5.57%

December 31, 2023 calculation

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

Operating Return on Assets (Operating ROA) is a crucial financial metric that indicates how efficiently a company utilizes its assets to generate operating profits. In the case of Unitil Corp., we observe some fluctuations in its Operating ROA over the past eight quarters.

From Q1 2022 to Q4 2023, Unitil Corp.'s Operating ROA experienced a general increasing trend, starting at 5.17% in Q1 2022 and reaching its peak at 5.27% in Q2 2023. This upward trajectory suggests an improvement in the company's ability to generate operating profits relative to its total assets.

However, it is important to note that there were slight fluctuations within this increasing trend, with some quarters showing a marginal decrease followed by a subsequent recovery. For instance, in Q3 2022, there was a dip to 4.21%, but the company quickly rebounded and maintained a stable range above 5% in later quarters.

Overall, Unitil Corp.'s Operating ROA demonstrates a generally positive performance, indicating efficient utilization of assets to generate operating income. Investors and stakeholders can view this trend as a favorable indicator of the company's operational efficiency and profitability over the analyzed period.