UGI Corporation (UGI)
Days of inventory on hand (DOH)
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 22.68 | 12.12 | 10.04 | 21.36 | 19.13 | |
| DOH | days | 16.09 | 30.11 | 36.37 | 17.09 | 19.08 |
September 30, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 22.68
= 16.09
To analyze UGI Corp.'s days of inventory on hand (DOH) over the past five years, we can observe a fluctuating trend. The company's DOH decreased significantly from 2019 to 2020, indicating a more efficient management of inventory during this period. However, in 2021, there was a notable increase in DOH, suggesting a potential buildup of inventory relative to sales. This trend continued into 2022, with DOH reaching its highest point in the past five years. It is worth noting that in 2023, there was a substantial decrease in DOH compared to the previous year, positioning it closer to the 2019 level. This erratic trend in DOH raises questions about UGI Corp.'s inventory management and the potential impact on its working capital and cash flow. Further analysis of the company's inventory turnover and industry benchmarks may provide additional insights into its inventory management efficiency.
Peer comparison
Sep 30, 2023