UNITIL Corporation (UTL)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 98,800 | 93,300 | 80,900 | 74,800 | 68,800 |
| Long-term debt | US$ in thousands | 638,400 | 509,100 | 489,100 | 497,800 | 523,100 |
| Total stockholders’ equity | US$ in thousands | 512,500 | 489,300 | 467,600 | 448,500 | 389,200 |
| Return on total capital | 8.58% | 9.34% | 8.46% | 7.90% | 7.54% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $98,800K ÷ ($638,400K + $512,500K)
= 8.58%
UNITIL Corporation's return on total capital has shown a steady increase over the years, starting at 7.54% as of December 31, 2020, and reaching 8.58% by December 31, 2024. This indicates the company's ability to generate earnings from its total invested capital has improved during this period. The upward trend suggests that UNITIL is efficiently utilizing its capital to generate profits. However, the slight decrease in return on total capital in 2024 compared to 2023 may indicate a temporary dip in performance or a change in the company's capital structure. Overall, the increasing trend in return on total capital reflects positively on UNITIL's financial performance and efficiency in generating returns for its investors.
Peer comparison
Dec 31, 2024