UGI Corporation (UGI)
Cash conversion cycle
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 25.36 | 16.09 | 30.11 | 36.37 | 17.09 |
| Days of sales outstanding (DSO) | days | 38.73 | 37.37 | 45.33 | 49.41 | 40.73 |
| Number of days of payables | days | 33.56 | 22.78 | 40.34 | 64.90 | 33.68 |
| Cash conversion cycle | days | 30.52 | 30.68 | 35.09 | 20.87 | 24.14 |
September 30, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 25.36 + 38.73 – 33.56
= 30.52
The cash conversion cycle of UGI Corporation has fluctuated over the past five years. In the most recent fiscal year ended on September 30, 2024, the company's cash conversion cycle was 30.52 days, experiencing a slight decrease compared to 30.68 days in the prior year. This indicates that UGI Corporation was able to manage its operating cycle more efficiently in converting its investments in inventory and accounts receivable into cash within a shorter period.
Looking back to September 30, 2022, the cash conversion cycle was 35.09 days, which was higher than the current year and the year before. This suggests that UGI Corporation took longer to convert its inventory and accounts receivable into cash in that particular period.
On the other hand, in the fiscal year ending September 30, 2021, the company's cash conversion cycle was notably lower at 20.87 days, indicating that UGI Corporation was able to more rapidly convert its investments in inventory and accounts receivable into cash compared to the surrounding years.
Similarly, in the fiscal year ending September 30, 2020, UGI Corporation's cash conversion cycle was 24.14 days, which was shorter than in the preceding year but longer compared to the most recent fiscal year.
Overall, fluctuations in the cash conversion cycle of UGI Corporation over the past five years suggest varying levels of efficiency in managing working capital and converting assets into cash, with the company experiencing both improvements and setbacks in this aspect of its operations.
Peer comparison
Sep 30, 2024