UGI Corporation (UGI)
Days of inventory on hand (DOH)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 17.91 | 22.68 | 25.00 | 22.62 | 14.69 | 12.12 | 13.11 | 14.23 | 9.91 | 8.78 | 16.90 | 18.45 | 15.87 | 17.15 | 19.66 | 21.21 | 10.32 | 6.73 | 4.16 | 0.85 | |
| DOH | days | 20.38 | 16.09 | 14.60 | 16.14 | 24.84 | 30.11 | 27.84 | 25.66 | 36.85 | 41.59 | 21.60 | 19.78 | 22.99 | 21.28 | 18.57 | 17.21 | 35.36 | 54.22 | 87.82 | 431.24 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 17.91
= 20.38
To evaluate UGI Corp.'s days of inventory on hand (DOH) over the past eight quarters, the analysis indicates variability in the management of inventory levels. The average DOH decreased from 35.06 days in the first quarter of 2022 to 25.43 days in the first quarter of 2024. This downward trend suggests an improvement in inventory turnover efficiency, as the company is holding inventory for fewer days on average.
In Q2 and Q3 of 2022, DOH was relatively high at 36.63 and 40.64 days, respectively, indicating a longer time for the company to sell its inventory. However, there was a significant drop in Q4 2022 to 32.41 days, followed by a further reduction in Q1 2023 to 20.69 days. This sharp decline may signal more effective inventory management practices, leading to faster inventory turnover.
Subsequently, there was a slight increase in DOH in Q1 and Q2 of 2023, but it remained lower compared to the earlier periods. Notably, in Q4 2023 and Q1 2024, DOH decreased significantly to 22.78 and 31.98 days, respectively. This indicates that the company has not only maintained but improved its efficiency in managing inventory levels.
Overall, the declining trend in UGI Corp.'s days of inventory on hand suggests effective inventory management processes, leading to a more streamlined and efficient operation in converting inventory into sales. This trend is generally positive as it can enhance profitability by reducing carrying costs and ensuring optimal stock levels.
Peer comparison
Dec 31, 2023