UNITIL Corporation (UTL)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.36 | 0.30 | 0.31 | 0.32 | 0.35 |
| Debt-to-capital ratio | 0.55 | 0.51 | 0.51 | 0.53 | 0.57 |
| Debt-to-equity ratio | 1.25 | 1.04 | 1.05 | 1.11 | 1.34 |
| Financial leverage ratio | 3.50 | 3.41 | 3.40 | 3.43 | 3.80 |
UNITIL Corporation's solvency ratios indicate its ability to meet its long-term obligations. Over the five-year period from 2020 to 2024, the Debt-to-assets ratio has decreased gradually from 0.35 to 0.30. This downward trend suggests that UNITIL has been reducing its reliance on debt financing in relation to its total assets.
Similarly, the Debt-to-capital ratio has also shown a decline from 0.57 in 2020 to 0.55 in 2024. This indicates that the company has been decreasing its debt in relation to its total capital structure over the years.
The Debt-to-equity ratio has fluctuated over the period, starting at 1.34 in 2020, reaching a low of 1.04 in 2023, and then slightly increasing to 1.25 in 2024. Despite the fluctuations, the downward trend overall reflects a decreasing reliance on debt funding in comparison to equity.
The Financial leverage ratio, which measures the company's reliance on debt to finance its operations, has also displayed a decreasing trend from 3.80 in 2020 to 3.50 in 2024. This suggests that UNITIL has been effectively managing its financial leverage by reducing its debt levels relative to its equity.
Overall, the declining trends in these solvency ratios indicate that UNITIL Corporation has been strengthening its financial position by reducing its debt levels and improving its ability to cover its long-term obligations with its available assets and capital.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 2.62 | 2.67 | 2.86 | 2.75 | 2.61 |
The interest coverage ratio for UNITIL Corporation has shown a consistent trend over the past five years, ranging from 2.61 in December 31, 2020, to 2.62 in December 31, 2024. This indicates that the company's ability to cover its interest expenses with its earnings has remained relatively stable. The slight fluctuations in the ratio suggest a moderate level of financial stability in managing its interest obligations. However, it is important for UNITIL to continue monitoring and managing its interest coverage to ensure it remains at a healthy level to meet its debt obligations effectively.