UGI Corporation (UGI)
Cash ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 213,000 | 241,000 | 405,000 | 855,000 | 336,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 2,060,000 | 2,274,000 | 2,444,000 | 2,297,000 | 1,755,000 |
| Cash ratio | 0.10 | 0.11 | 0.17 | 0.37 | 0.19 |
September 30, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($213,000K
+ $—K)
÷ $2,060,000K
= 0.10
The cash ratio of UGI Corporation has shown a declining trend over the past five years, decreasing from 0.37 in September 2021 to 0.10 in September 2024. This indicates that the company's ability to cover its short-term liabilities with its available cash and cash equivalents has weakened over the years. A lower cash ratio may suggest a potential liquidity risk for the company, as it has less cash on hand relative to its current liabilities. It is important for UGI Corporation to closely monitor its cash position and consider strategies to improve its liquidity in order to manage its short-term obligations effectively.
Peer comparison
Sep 30, 2024