UNITIL Corporation (UTL)

Return on total capital

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	93,300	80,900	74,800	68,800	84,600
Long-term debt	US$ in thousands	509,100	489,100	497,800	523,100	437,500
Total stockholders’ equity	US$ in thousands	489,300	467,600	448,500	389,200	376,800
Return on total capital		9.34%	8.46%	7.90%	7.54%	10.39%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $93,300K ÷ ($509,100K + $489,300K)
= 9.34%

Unitil Corp.'s return on total capital has shown consistency over the past five years, ranging from 7.32% to 8.19%. In 2023, the return on total capital was 7.47%, maintaining a stable performance similar to the previous year. This indicates that the company is effectively utilizing its total capital to generate profits. While the return on total capital may fluctuate slightly, overall, Unitil Corp. has been able to maintain a satisfactory level of return relative to the capital it employs in its operations. It suggests that the company is efficiently managing its resources to generate earnings for its stakeholders.