UGI Corporation (UGI)
Payables turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 9,820,000 | 8,061,000 | 4,707,000 | 5,148,000 | 4,400,300 |
| Payables | US$ in thousands | 613,000 | 891,000 | 837,000 | 475,000 | 439,000 |
| Payables turnover | 16.02 | 9.05 | 5.62 | 10.84 | 10.02 |
September 30, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $9,820,000K ÷ $613,000K
= 16.02
The payables turnover ratio for UGI Corp. has fluctuated over the past five years. In 2023, the ratio stood at 11.32, which indicates that the company was able to turn over its accounts payable 11.32 times during the year. This represents a significant improvement from the previous year's ratio of 6.70 and reflects a more efficient management of its payables. However, it is important to note that the ratio has been somewhat volatile in recent years, having been at 3.12 in 2021 before increasing to 6.63 in 2020 and 9.85 in 2019. This variability could be indicative of changes in the company's payment policies, supplier relationships, or operational efficiency. Overall, the increasing trend in the payables turnover ratio suggests that UGI Corp. has been improving its ability to manage and pay off its accounts payable in a timely manner.
Peer comparison
Sep 30, 2023