UGI Corporation (UGI)
Fixed asset turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 8,290,000 | 8,928,000 | 9,458,000 | 9,832,000 | 10,192,000 | 10,106,000 | 9,610,000 | 9,073,000 | 8,188,000 | 7,447,000 | 7,133,000 | 6,836,000 | 6,484,000 | 6,559,000 | 6,585,000 | 6,750,000 | 7,127,000 | 7,320,000 | 7,443,100 | 7,520,000 |
| Property, plant and equipment | US$ in thousands | 8,601,000 | 8,547,000 | 8,394,000 | 8,255,000 | 8,176,000 | 8,040,000 | 7,839,000 | 7,812,000 | 7,597,000 | 7,558,000 | 7,085,000 | 7,020,000 | 7,054,000 | 6,960,000 | 6,805,000 | 6,805,000 | 6,784,000 | 6,687,800 | 6,009,800 | 5,917,000 |
| Fixed asset turnover | 0.96 | 1.04 | 1.13 | 1.19 | 1.25 | 1.26 | 1.23 | 1.16 | 1.08 | 0.99 | 1.01 | 0.97 | 0.92 | 0.94 | 0.97 | 0.99 | 1.05 | 1.09 | 1.24 | 1.27 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $8,290,000K ÷ $8,601,000K
= 0.96
The fixed asset turnover ratio for UGI Corp. has shown some fluctuations over the past eight quarters. The ratio ranged from a low of 0.96 in Q1 2024 to a high of 1.26 in Q4 2022.
A higher fixed asset turnover ratio indicates that the company is generating more revenue per dollar of fixed assets, which is generally favorable as it signifies better efficiency in utilizing its fixed assets to generate sales.
In the recent quarters, there has been a slight decrease in the fixed asset turnover ratio, dropping from 1.26 in Q4 2022 to 0.96 in Q1 2024. This could indicate a potential decline in efficiency in utilizing fixed assets to generate sales revenue.
It is important for UGI Corp. to closely monitor its fixed asset turnover ratio and consider strategies to improve efficiency in utilizing its fixed assets to ensure optimal financial performance and profitability in the long run.
Peer comparison
Dec 31, 2023