UGI Corporation (UGI)
Current ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 2,045,000 | 3,802,000 | 3,270,000 | 1,543,000 | 1,566,000 |
| Total current liabilities | US$ in thousands | 2,274,000 | 2,444,000 | 2,297,000 | 1,755,000 | 2,028,000 |
| Current ratio | 0.90 | 1.56 | 1.42 | 0.88 | 0.77 |
September 30, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $2,045,000K ÷ $2,274,000K
= 0.90
The current ratio measures a company's ability to meet its short-term obligations with its current assets. A higher current ratio is generally preferred as it indicates a stronger liquidity position.
In the case of UGI Corp., the current ratio has fluctuated over the past five years. In 2023, the current ratio stands at 0.90, reflecting a decrease from the previous year. This suggests a potential weakening in UGI Corp.'s short-term liquidity position. The ratio of 0.90 indicates that UGI Corp. may have difficulties in meeting its short-term obligations using its current assets, which may raise concerns about its ability to cover immediate liabilities.
Conversely, in 2022 and 2021, the current ratio was 1.56 and 1.42 respectively, indicating a healthier liquidity position. However, in 2020 and 2019, the ratios were lower at 0.88 and 0.77, indicating potential liquidity challenges.
When analyzing UGI Corp.'s current ratio, it is important to consider the underlying reasons for its fluctuations, such as changes in current assets and liabilities. Further analysis of UGI Corp.'s working capital management and short-term financial health is recommended to gain a comprehensive understanding of its liquidity position.
Peer comparison
Sep 30, 2023