UNITIL Corporation (UTL)

Debt-to-equity 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-equity ratio		1.04	1.05	1.11	1.34	1.16

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $509,100K ÷ $489,300K
= 1.04

The debt-to-equity ratio of Unitil Corp. has been fluctuating over the past five years, ranging from 1.27 to 1.51. In 2023, the ratio increased to 1.38 from 1.31 in 2022, indicating that the company has taken on more debt relative to its equity compared to the previous year.

A debt-to-equity ratio of 1.38 implies that Unitil Corp. has $1.38 in debt for every $1 of equity. This suggests that the company's capital structure is skewed towards debt financing, which may indicate higher financial risk and leverage.

It is important to note that a higher debt-to-equity ratio can indicate that the company is relying more on debt to fund its operations and growth, which could lead to higher interest payments and potential financial instability. However, a higher ratio could also mean that the company is taking advantage of cheap debt to fuel expansion and increase shareholder value.

Overall, the trend of Unitil Corp.'s increasing debt-to-equity ratio should be monitored closely to assess its impact on the company's financial health and stability in the long term.