UNITIL Corporation (UTL)

Financial leverage ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total assets	US$ in thousands	1,670,400	1,590,400	1,540,300	1,477,900	1,370,800
Total stockholders’ equity	US$ in thousands	489,300	467,600	448,500	389,200	376,800
Financial leverage ratio		3.41	3.40	3.43	3.80	3.64

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,670,400K ÷ $489,300K
= 3.41

Unitil Corp.'s financial leverage ratio has shown fluctuation over the past five years. The ratio indicates the amount of debt a company uses to finance its operations compared to its equity. A higher ratio suggests a higher level of financial risk due to increased reliance on debt financing.

In this case, Unitil Corp.'s financial leverage ratio has ranged from 3.40 to 3.80 over the past five years. It peaked at 3.80 in the year ending December 31, 2020, indicating a significant level of debt relative to equity at that time. The ratio decreased to 3.41 by the end of December 2023, suggesting a slightly lower level of debt compared to equity, which may reflect a strategy to reduce financial risk.

Overall, the trend in Unitil Corp.'s financial leverage ratio fluctuates, but it is essential for investors and stakeholders to monitor the ratio over time to assess the company's capital structure and financial risk management.