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

Company name
Symbol
Cash ratio
UGI Corporation
UGI
0.11
Sempra Energy
SRE
0.02