UGI Corporation (UGI)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 204,000 | 241,000 | 260,000 | 321,000 | 317,000 | 405,000 | 670,000 | 718,000 | 334,000 | 855,000 | 545,000 | 444,000 | 416,000 | 336,000 | 487,000 | 297,000 | 333,000 | 447,000 | 533,700 | 492,100 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 300 | 300 | 400 | 100 | — | — |
| Total current liabilities | US$ in thousands | 2,341,000 | 2,274,000 | 2,083,000 | 2,273,000 | 3,380,000 | 2,444,000 | 2,068,000 | 2,499,000 | 2,581,000 | 2,297,000 | 1,701,000 | 1,892,000 | 2,097,000 | 1,755,000 | 1,679,000 | 2,116,000 | 2,391,000 | 2,028,000 | 1,594,700 | 1,777,300 |
| Cash ratio | 0.09 | 0.11 | 0.12 | 0.14 | 0.09 | 0.17 | 0.32 | 0.29 | 0.13 | 0.37 | 0.32 | 0.23 | 0.20 | 0.19 | 0.29 | 0.14 | 0.14 | 0.22 | 0.33 | 0.28 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($204,000K
+ $—K)
÷ $2,341,000K
= 0.09
The cash ratio for UGI Corp. has exhibited a declining trend in recent quarters, decreasing from 0.72 in Q2 2022 to 0.19 in Q1 2024. This indicates that the company's ability to cover its short-term liabilities with cash and cash equivalents has weakened over time.
A cash ratio below 1 suggests that UGI Corp. may have difficulty meeting its immediate financial obligations solely from its cash reserves. The sharp drop in the cash ratio from Q2 2022 to Q1 2024 may raise concerns about the company's liquidity position and ability to manage short-term financial commitments effectively.
It is important for UGI Corp. to closely monitor its liquidity position and consider strategies to improve its cash reserves to ensure it can meet its short-term obligations without relying heavily on external financing. Further analysis of the company's cash flow generation and cash management practices may be necessary to address the declining trend in the cash ratio.
Peer comparison
Dec 31, 2023