UNITIL Corporation (UTL)

Return on equity (ROE)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	45,200	41,400	36,100	32,200	44,200
Total stockholders’ equity	US$ in thousands	489,300	467,600	448,500	389,200	376,800
ROE		9.24%	8.85%	8.05%	8.27%	11.73%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $45,200K ÷ $489,300K
= 9.24%

Unitil Corp.'s return on equity (ROE) has shown a fluctuating trend over the past five years, ranging from 9.24% in 2023 to 11.73% in 2019. The company's ROE has exhibited a gradual decrease overall from 2019 to 2023, with a slight uptick in 2022. This indicates that the company's ability to generate profits from shareholders' equity has weakened in recent years.

A ROE of 9.24% in 2023 suggests that for every dollar of shareholders' equity, Unitil Corp. generated a return of 9.24 cents during the year. This level of ROE may be considered modest and could indicate inefficiencies in utilizing the company's equity to generate earnings for shareholders. It would be beneficial for Unitil Corp. to assess its operational and financial strategies to enhance profitability and shareholder value in the future.