UGI Corporation (UGI)
Cash ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 241,000 | 405,000 | 855,000 | 336,000 | 447,000 |
| Short-term investments | US$ in thousands | — | — | — | — | 100 |
| Total current liabilities | US$ in thousands | 2,274,000 | 2,444,000 | 2,297,000 | 1,755,000 | 2,028,000 |
| Cash ratio | 0.11 | 0.17 | 0.37 | 0.19 | 0.22 |
September 30, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($241,000K
+ $—K)
÷ $2,274,000K
= 0.11
The cash ratio measures a company's ability to cover its short-term liabilities using its cash and cash equivalents. A higher ratio indicates greater liquidity and financial flexibility.
UGI Corp.'s cash ratio has fluctuated over the past five years, with a notable decline from 0.76 in 2021 to 0.24 in 2023. This suggests a decrease in the company's ability to cover its short-term liabilities solely with its available cash and cash equivalents.
The lower cash ratio could indicate a potential liquidity challenge or increased reliance on other sources to meet short-term obligations. It is important for stakeholders to monitor this trend and assess UGI Corp.'s ability to manage its liquidity effectively in the coming periods.
Peer comparison
Sep 30, 2023