UNITIL Corporation (UTL)

Debt-to-equity ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Long-term debt	US$ in thousands	638,400	638,400	506,400	507,900	509,100	509,000	486,200	488,000	489,100	493,100	495,100	496,600	497,800	501,300	505,300	515,800	523,100	529,000	436,400	436,300
Total stockholders’ equity	US$ in thousands	512,500	502,400	508,800	510,800	489,300	479,800	484,400	486,400	467,600	458,800	464,300	465,300	448,500	439,600	400,800	403,300	389,200	380,800	385,700	387,900
Debt-to-equity ratio		1.25	1.27	1.00	0.99	1.04	1.06	1.00	1.00	1.05	1.07	1.07	1.07	1.11	1.14	1.26	1.28	1.34	1.39	1.13	1.12

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 shown some fluctuations over the analyzed periods. The ratio stood at 1.12 as of March 31, 2020, increased to 1.39 by September 30, 2020, and then decreased to 1.07 by September 30, 2022. Following this, the ratio experienced a downward trend, reaching its lowest point of 0.99 as of March 31, 2024, before slightly increasing to 1.25 by December 31, 2024.

The ratio indicates the proportion of debt financing relative to equity financing in the company's capital structure. A higher debt-to-equity ratio suggests that the company is more leveraged, relying more on debt to finance its operations. On the other hand, a lower ratio may indicate a more conservative financial structure with less reliance on debt.

Overall, the decreasing trend in UNITIL's debt-to-equity ratio from 2022 to 2024 may suggest a shift towards a more balanced capital structure with reduced debt levels relative to equity. This trend could be a positive sign for the company's financial stability and risk management.