UGI Corporation (UGI)
Payables 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 |
| Payables | US$ in thousands | 544,000 | 613,000 | 891,000 | 837,000 | 475,000 |
| Payables turnover | 10.88 | 16.02 | 9.05 | 5.62 | 10.84 |
September 30, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $5,916,000K ÷ $544,000K
= 10.88
The payables turnover ratio measures how efficiently UGI Corporation is managing its accounts payable by comparing the company's average accounts payable to the cost of goods sold. A higher payables turnover ratio indicates that the company is paying off its suppliers more frequently.
In the case of UGI Corporation, the payables turnover has fluctuated over the past five years. In 2024, the payables turnover ratio was 10.88, lower than the previous year's ratio of 16.02. This decrease may suggest that UGI Corporation took longer to pay off its suppliers in 2024 compared to 2023.
However, when compared to 2022 and 2021, the payables turnover ratio in 2024 was still higher, indicating an improvement in managing accounts payable efficiency. Additionally, in 2020, the payables turnover closely resembled the 2024 ratio, suggesting a return to a similar level of efficiency in managing payables.
Overall, the payables turnover ratio for UGI Corporation has shown variability over the years, with fluctuations likely influenced by changes in the company's payment practices and relationships with suppliers. Further analysis of underlying factors influencing accounts payable management would provide a more comprehensive understanding of UGI Corporation's financial performance.
Peer comparison
Sep 30, 2024