UGI Corporation (UGI)
Inventory turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 5,916,000 | 9,820,000 | 8,061,000 | 4,707,000 | 5,148,000 |
| Inventory | US$ in thousands | 411,000 | 433,000 | 665,000 | 469,000 | 241,000 |
| Inventory turnover | 14.39 | 22.68 | 12.12 | 10.04 | 21.36 |
September 30, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $5,916,000K ÷ $411,000K
= 14.39
The inventory turnover ratio measures how efficiently a company manages its inventory by showing how many times it sells and replaces its inventory over a specific period. A higher inventory turnover ratio generally indicates more efficient management of inventory.
Based on the data provided for UGI Corporation, we observe fluctuations in the inventory turnover ratio over the past five years:
- In 2024, the inventory turnover ratio was 14.39, indicating that UGI Corporation turned over its inventory approximately 14.39 times during the year. This represents a decrease compared to the previous year's ratio of 22.68.
- The significant decrease in inventory turnover from 2023 to 2024 could suggest potential issues such as excess inventory levels or slower sales which may warrant further investigation.
- Comparing the 2024 ratio to the ratios from 2022, 2021, and 2020, it is lower than the 2020 and 2022 ratios but higher than the 2021 ratio. This indicates variability in inventory management efficiency over the years.
Overall, while the 2024 inventory turnover ratio for UGI Corporation decreased compared to the previous year, the company still appears to efficiently manage its inventory relative to some prior periods. Further analysis of the factors impacting inventory turnover in the current year would be necessary to understand the underlying causes of the decrease and assess its implications for the company's overall performance.
Peer comparison
Sep 30, 2024