UGI Corporation (UGI)
Cash conversion cycle
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 25.40 | 24.26 | 20.18 | 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 |
| Days of sales outstanding (DSO) | days | 38.73 | 40.95 | 56.87 | 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 |
| Number of days of payables | days | 33.63 | 29.57 | 31.15 | 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 |
| Cash conversion cycle | days | 30.51 | 35.63 | 45.89 | 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 |
September 30, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 25.40 + 38.73 – 33.63
= 30.51
The cash conversion cycle of UGI Corporation has shown fluctuations over the periods analyzed. The cash conversion cycle measures the number of days it takes for a company to convert its investments in inventory and other resources into cash flow from sales. A shorter cash conversion cycle indicates that the company is efficiently managing its working capital.
In the most recent period, ending on September 30, 2024, UGI Corporation had a cash conversion cycle of 30.51 days, which was an improvement from the previous period. This suggests that the company was able to convert its investments into cash more quickly, potentially indicating more efficient operations.
Looking at historical data, there have been periods where the cash conversion cycle was relatively longer, such as the period ending on March 31, 2023, where it was 45.89 days. This longer cycle may indicate inefficiencies in managing working capital, potentially leading to higher costs and reduced liquidity.
It is essential for UGI Corporation to monitor and manage its cash conversion cycle effectively to ensure optimal utilization of resources and maximize cash flow generation. By analyzing trends over time, the company can identify areas for improvement and implement strategies to enhance operational efficiency and financial performance.
Peer comparison
Sep 30, 2024