UNITIL Corporation (UTL)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	489,300	467,600	448,500	389,200	376,800
Debt-to-capital ratio		0.51	0.51	0.53	0.57	0.54

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $509,100K ÷ ($509,100K + $489,300K)
= 0.51

The debt-to-capital ratio of Unitil Corp. has been relatively stable over the past five years, ranging from 0.56 to 0.60. This ratio indicates the proportion of the company's capital structure that is financed by debt.

The slight fluctuations in the debt-to-capital ratio suggest that Unitil Corp. has been managing its debt levels effectively, maintaining a balance between debt and equity financing. A ratio around 0.57 to 0.58 indicates that the company relies moderately on debt to finance its operations and investments, while also maintaining a significant portion of equity in its capital structure.

Overall, the consistency in the debt-to-capital ratio over the years points towards a prudent financial management approach by Unitil Corp., balancing the benefits of debt financing with the risks associated with leverage. Moving forward, it will be important for the company to continue monitoring and managing its debt levels to sustain its financial stability and growth prospects.