UGI Corporation (UGI)
Days of inventory on hand (DOH)
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 14.39 | 22.68 | 12.12 | 10.04 | 21.36 | |
| DOH | days | 25.36 | 16.09 | 30.11 | 36.37 | 17.09 |
September 30, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 14.39
= 25.36
The days of inventory on hand (DOH) for UGI Corporation have fluctuated over the past five years. In 2024, the DOH was 25.36 days, representing an increase from the previous year's 16.09 days. This indicates that the corporation held inventory for a longer period before selling it in 2024 compared to 2023.
Looking at a longer trend, in 2022, the DOH was 30.11 days, followed by a decrease to 36.37 days in 2021, and then a significant drop to 17.09 days in 2020. These fluctuations suggest varying efficiency in managing inventory levels over the years.
Overall, a lower DOH is generally preferable as it indicates that the company is selling inventory more quickly, potentially reducing storage and carrying costs. Conversely, a higher DOH may signal inefficiencies in inventory management, tying up capital in unsold goods. UGI Corporation may benefit from closely monitoring and optimizing its inventory turnover to enhance operational efficiency and financial performance.
Peer comparison
Sep 30, 2024