UNITIL Corporation (UTL)

Interest coverage

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	90,600	90,200	92,400	91,800	87,100	84,900	84,100	84,200	80,500	81,300	81,300	80,200	77,800	76,700	76,900	77,200	71,400	68,100	70,700	71,900
Interest expense (ttm)	US$ in thousands	34,800	36,000	37,300	34,500	33,400	31,600	30,200	29,900	28,300	27,200	26,700	26,700	27,000	27,200	26,800	26,400	26,300	26,200	26,300	26,600
Interest coverage		2.60	2.51	2.48	2.66	2.61	2.69	2.78	2.82	2.84	2.99	3.04	3.00	2.88	2.82	2.87	2.92	2.71	2.60	2.69	2.70

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $90,600K ÷ $34,800K
= 2.60

UNITIL Corporation's interest coverage ratio has shown some fluctuation over the years based on the provided data. The ratio measures the company's ability to cover its interest expenses with its operating income.

From March 31, 2020, to December 31, 2021, Unitil's interest coverage ratio ranged between 2.60 and 2.92, indicating that the company was able to cover its interest expenses about 2.6 to 2.92 times with its operating income during this period.

In the subsequent periods, the interest coverage ratio fluctuated slightly, ranging from 2.78 to 3.04 as of June 30, 2022. Overall, the company maintained a relatively stable interest coverage ratio, which suggests that Unitil was able to manage its interest expenses effectively during this time frame.

However, towards the end of the data set, the interest coverage ratio started to decline, reaching 2.51 as of September 30, 2024. This might indicate a potential strain on the company's ability to cover its interest expenses with its operating income during this period.

It is essential for investors and creditors to monitor Unitil's interest coverage ratio going forward to assess the company's financial health and its ability to meet its debt obligations.