UGI Corporation (UGI)
Number of days of payables
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 16.02 | 9.05 | 5.62 | 10.84 | 10.02 | |
| Number of days of payables | days | 22.78 | 40.34 | 64.90 | 33.68 | 36.41 |
September 30, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 16.02
= 22.78
The number of days of payables for UGI Corp. has fluctuated over the past five years. In 2023, the number of days of payables was 32.25 days, indicating that, on average, the company takes approximately 32 days to pay its suppliers and vendors. This represents a significant improvement compared to the previous year, 2022, when the number of days of payables was 54.45 days. In 2021, there was a substantial increase in the number of days of payables to 116.87 days, suggesting a longer time taken to settle payables compared to the previous and subsequent years.
It is important to note that a lower number of days of payables can suggest a more efficient use of trade credit and working capital, as the company is taking fewer days to pay its suppliers. Conversely, a higher number of days of payables may signal potential cash flow advantages for the company, as it delays payments to its suppliers. These insights provide valuable context for evaluating UGI Corp.'s cash management and supplier relationship strategies over the years.
Peer comparison
Sep 30, 2023