UGI Corporation (UGI)
Fixed asset turnover
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 7,210,000 | 7,372,000 | 7,651,000 | 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 |
| Property, plant and equipment | US$ in thousands | 8,709,000 | 8,571,000 | 8,608,000 | 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 |
| Fixed asset turnover | 0.83 | 0.86 | 0.89 | 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 |
September 30, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $7,210,000K ÷ $8,709,000K
= 0.83
The fixed asset turnover ratio reflects how efficiently UGI Corporation is utilizing its fixed assets to generate revenue. The trend in the fixed asset turnover ratio shows a fluctuating pattern over the past few quarters, indicating variations in the company's ability to generate sales from its investment in fixed assets.
The ratio has generally been decreasing from the value of 1.25 in December 2022 to 0.83 in September 2024, which may suggest a decline in the efficiency of the company in utilizing its fixed assets to generate sales during this period.
A lower fixed asset turnover ratio could indicate underutilization of fixed assets or declining sales relative to the value of fixed assets. This might prompt further analysis to understand the reasons behind this trend and evaluate the company's asset management strategies.
Conversely, the ratio started to increase from 0.92 in March 2021 to peak at 1.25 in December 2022, reflecting improved efficiency in generating sales from fixed assets. This improvement could be attributed to factors such as increased revenue generation from existing assets, optimal asset utilization, or strategic investments in productive fixed assets.
In summary, the fluctuating trend in UGI Corporation's fixed asset turnover ratio suggests varying levels of efficiency in utilizing fixed assets to generate revenue over the past few quarters, warranting a closer examination to identify key drivers behind these fluctuations.
Peer comparison
Sep 30, 2024