UGI Corporation (UGI)
Cash conversion cycle
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 20.38 | 16.09 | 14.60 | 16.14 | 24.84 | 30.11 | 27.84 | 25.66 | 36.85 | 41.59 | 21.60 | 19.78 | 22.99 | 21.28 | 18.57 | 17.21 | 35.36 | 54.22 | 87.82 | 431.24 |
| Days of sales outstanding (DSO) | days | 52.31 | 37.37 | 38.24 | 56.54 | 58.34 | 45.33 | 51.69 | 73.14 | 70.83 | 49.41 | 49.94 | 69.95 | 62.77 | 40.73 | 37.39 | 54.96 | 51.78 | 31.95 | 38.24 | 59.77 |
| Number of days of payables | days | 34.24 | 22.78 | 19.26 | 28.21 | 40.76 | 40.34 | 47.32 | 58.99 | 65.43 | 74.22 | 42.25 | 46.27 | 52.50 | 41.94 | 35.29 | 44.45 | 85.26 | 103.48 | 181.44 | 1,266.72 |
| Cash conversion cycle | days | 38.44 | 30.68 | 33.58 | 44.46 | 42.42 | 35.09 | 32.22 | 39.81 | 42.25 | 16.77 | 29.29 | 43.45 | 33.26 | 20.07 | 20.67 | 27.71 | 1.88 | -17.32 | -55.38 | -775.71 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 20.38 + 52.31 – 34.24
= 38.44
The cash conversion cycle of UGI Corp. fluctuated over the past eight quarters, ranging from 26.79 days to 44.54 days. In Q2 2023, the company experienced its longest cash conversion cycle of 44.54 days, indicating that it took the company almost 45 days to convert its investments in inventory and other resources back into cash.
Conversely, in Q3 2022, UGI Corp. achieved its shortest cash conversion cycle of 26.79 days, suggesting a more efficient management of working capital during that period. Overall, the trend in the cash conversion cycle is not consistent, indicating potential fluctuations in the company's working capital management efficiency over time.
Analyzing the cash conversion cycle can provide insights into how effectively UGI Corp. manages its cash flow, inventory, and accounts receivable. A shorter cash conversion cycle typically signifies better liquidity and efficiency in converting resources into cash, while a longer cycle may indicate inefficiencies or delays in the company's operations or collection processes.
Further analysis and comparison with industry benchmarks or historical data could provide a more in-depth understanding of UGI Corp.'s cash conversion cycle performance and help identify areas for improvement in working capital management.
Peer comparison
Dec 31, 2023