UNITIL Corporation (UTL)

Debt-to-capital 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 stockholders’ equity US$ in thousands 512,500 489,300 467,600 448,500 389,200
Debt-to-capital ratio 0.55 0.51 0.51 0.53 0.57

December 31, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $638,400K ÷ ($638,400K + $512,500K)
= 0.55

The debt-to-capital ratio of UNITIL Corporation has shown a declining trend over the past five years, decreasing from 0.57 in December 31, 2020, to 0.53 in December 31, 2021, and further dropping to 0.51 in both December 31, 2022, and December 31, 2023. This indicates that the company has been relying less on debt as a source of financing in relation to its overall capital structure. However, there was a slight increase in the ratio to 0.55 by December 31, 2024, suggesting a potential shift back towards a slightly higher dependence on debt financing. Overall, the decreasing trend in the debt-to-capital ratio signals improved financial stability and lower financial risk for UNITIL Corporation, with the recent uptick indicating a need to monitor the company's debt management practices closely.