UGI Corporation (UGI)

Liquidity ratios

Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Current ratio 0.80 0.91 1.21 0.98 0.90 0.98 1.21 1.02 1.56 1.70 1.66 1.33 1.42 1.40 1.26 1.04 0.88 0.95 0.89 0.81
Quick ratio 0.47 0.55 0.80 0.59 0.51 0.60 0.81 0.58 0.68 0.98 1.01 0.75 0.81 0.89 0.93 0.73 0.61 0.69 0.62 0.56
Cash ratio 0.10 0.11 0.14 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

UGI Corporation's liquidity ratios show fluctuations over the past several quarters. The current ratio, which indicates the company's ability to cover its short-term obligations with its current assets, has been declining over the recent quarters, dropping from a high of 1.70 in June 2022 to 0.80 in September 2024. This could indicate potential challenges in meeting short-term obligations.

Similarly, the quick ratio, which provides a more conservative measure of liquidity by excluding inventory from current assets, also shows a decreasing trend over time. The quick ratio decreased from 1.01 in June 2022 to 0.47 in September 2024, indicating a potential weakening in the company's ability to meet immediate payment obligations without relying on inventory sales.

The cash ratio, which measures the company's ability to cover its current liabilities with its cash and cash equivalents, has been fluctuating but generally displaying a decreasing trend. The ratio dropped from 0.37 in September 2021 to 0.10 in September 2024, suggesting a potential decrease in the company's ability to meet short-term obligations using its readily available cash resources.

Overall, the declining trend in UGI Corporation's liquidity ratios, including the current, quick, and cash ratios, may signal potential liquidity challenges for the company. Further analysis of the company's cash flow management and working capital practices may be necessary to understand the reasons behind these decreasing ratios and to address any underlying liquidity concerns.

Additional liquidity measure

Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Cash conversion cycle days 30.51 35.63 45.89 38.44 30.68 33.58 44.46 42.42 35.09 32.22 39.81 42.25 16.77 29.29 43.45 33.26 20.07 20.67 27.71 1.88

The cash conversion cycle of UGI Corporation has shown fluctuations over the periods analyzed. The cash conversion cycle represents the time it takes for a company to convert its investments in inventory into cash inflows from sales, considering the time taken to collect receivables and pay off payables.

From December 31, 2019, to September 30, 2024, UGI Corporation's cash conversion cycle has ranged from a low of 1.88 days to a high of 45.89 days. A shorter cash conversion cycle indicates that the company is able to generate cash quickly from its operations, while a longer cycle suggests inefficiencies in managing working capital.

The trend analysis of UGI Corporation's cash conversion cycle shows periods of improvement and deterioration. Generally, the company has shown a mix of shorter and longer cycles over the periods studied. It is important for the company to efficiently manage its inventory, receivables, and payables to minimize the time taken to convert investments into cash to improve its overall liquidity position and financial performance.