UNITIL Corporation (UTL)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,794,500 | 1,670,400 | 1,590,400 | 1,540,300 | 1,477,900 |
| Total stockholders’ equity | US$ in thousands | 512,500 | 489,300 | 467,600 | 448,500 | 389,200 |
| Financial leverage ratio | 3.50 | 3.41 | 3.40 | 3.43 | 3.80 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,794,500K ÷ $512,500K
= 3.50
The financial leverage ratio for UNITIL Corporation shows a steady trend over the five-year period from 2020 to 2024. The ratio decreased from 3.80 in 2020 to 3.43 in 2021, and then remained relatively stable around 3.40 to 3.50 in the subsequent years. A financial leverage ratio of 3.40 to 3.50 indicates that the company relies more on debt financing relative to its equity to support its operations and growth initiatives. Although the ratio has fluctuated slightly, it remains within a reasonable range for a utility company like UNITIL. Further analysis of the company's overall financial health and debt management practices would provide greater insight into the implications of this level of leverage.
Peer comparison
Dec 31, 2024