UNITIL Corporation (UTL)

Debt-to-assets ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Long-term debt US$ in thousands 638,400 509,100 489,100 497,800 523,100
Total assets US$ in thousands 1,794,500 1,670,400 1,590,400 1,540,300 1,477,900
Debt-to-assets ratio 0.36 0.30 0.31 0.32 0.35

December 31, 2024 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $638,400K ÷ $1,794,500K
= 0.36

The debt-to-assets ratio of UNITIL Corporation has shown a downward trend over the past five years, declining from 0.35 in December 31, 2020, to 0.36 in December 31, 2024. This ratio indicates that, as of December 31, 2024, 36% of the company's total assets are financed by debt. While the decrease in the ratio suggests improved financial health and lower reliance on debt financing, the slight uptick in 2024 may warrant further investigation to understand the underlying factors driving this change. Overall, a decreasing debt-to-assets ratio is generally viewed positively by investors and creditors as it signifies a stronger equity position and potentially lower financial risk for the company.