UNITIL Corporation (UTL)

Debt-to-equity 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-equity ratio		1.25	1.04	1.05	1.11	1.34

December 31, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $638,400K ÷ $512,500K
= 1.25

The debt-to-equity ratio of UNITIL Corporation has exhibited a fluctuating trend over the past five years. Starting at 1.34 in December 31, 2020, the ratio decreased to 1.11 by December 31, 2021, indicating a reduction in debt relative to equity. Subsequently, the ratio experienced a further decline to 1.05 by December 31, 2022, before slightly reducing to 1.04 by December 31, 2023. However, there was a slight increase in the ratio to 1.25 by December 31, 2024, signifying a higher proportion of debt compared to equity.

Overall, the decreasing trend in the debt-to-equity ratio from 2020 to 2023 suggests a potentially improving financial position with decreasing reliance on debt financing. Nevertheless, the subsequent increase in the ratio in 2024 may indicate a reversal in this trend, highlighting a higher level of debt relative to equity in that year. Further analysis of UNITIL Corporation's financial performance and debt management strategies would be beneficial to gain a deeper understanding of the company's financial health and its ability to meet its debt obligations.