UGI Corporation (UGI)
Fixed asset turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 7,210,000 | 8,928,000 | 10,106,000 | 7,447,000 | 6,559,000 |
| Property, plant and equipment | US$ in thousands | 8,709,000 | 8,547,000 | 8,040,000 | 7,558,000 | 6,960,000 |
| Fixed asset turnover | 0.83 | 1.04 | 1.26 | 0.99 | 0.94 |
September 30, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $7,210,000K ÷ $8,709,000K
= 0.83
Fixed asset turnover measures how effectively a company is utilizing its fixed assets to generate revenue. A higher fixed asset turnover indicates more efficient utilization of fixed assets. Analyzing UGI Corporation's fixed asset turnover over the past five years, we observe fluctuations in the ratio.
In 2024, the fixed asset turnover decreased to 0.83 from 1.04 in 2023, indicating a decrease in the efficiency of generating revenue from fixed assets. This could be attributed to factors such as underutilization of fixed assets or a decrease in sales relative to the investment in fixed assets.
In 2023, the ratio improved to 1.04 from 1.26 in 2022, reflecting more efficient use of fixed assets in generating revenue. This improvement may be due to increased sales or better management of fixed assets.
In 2022, the fixed asset turnover was 1.26, showing a higher efficiency in generating revenue from fixed assets compared to the previous years. This suggests effective utilization of fixed assets to drive sales and revenue growth.
In 2021 and 2020, the fixed asset turnover ratios were 0.99 and 0.94, respectively, indicating a decline in efficiency in utilizing fixed assets to generate revenue. This decline could be influenced by various factors such as stagnant sales, overinvestment in fixed assets, or inefficient asset management.
Overall, UGI Corporation's fixed asset turnover has shown variability over the past five years, highlighting the importance of consistent monitoring and management of fixed assets to optimize revenue generation.
Peer comparison
Sep 30, 2024