UNITIL Corporation (UTL)

Debt-to-assets ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	509,100	489,100	497,800	523,100	437,500
Total assets	US$ in thousands	1,670,400	1,590,400	1,540,300	1,477,900	1,370,800
Debt-to-assets ratio		0.30	0.31	0.32	0.35	0.32

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $509,100K ÷ $1,670,400K
= 0.30

The debt-to-assets ratio of Unitil Corp. has shown a relatively stable trend over the past five years. The ratio has ranged between 0.37 and 0.40 during this period, indicating that Unitil relies on debt to finance approximately 37% to 40% of its assets.

A debt-to-assets ratio of 0.40 as of December 31, 2023, suggests that Unitil's debt accounts for 40% of its total assets. This indicates that a significant portion of Unitil's assets are financed through debt. It is important to note that a higher debt-to-assets ratio may indicate higher financial leverage and potential higher risk, as the company may face challenges in servicing its debt obligations in adverse economic conditions.

Comparing the current ratio to previous years, the slight increase from 0.38 in 2022 to 0.40 in 2023 could indicate that Unitil has taken on additional debt relative to its assets. Further analysis of the reasons behind this increase in the ratio and the company's overall debt management strategy would be necessary to assess the potential impact on Unitil's financial stability and future performance.