UGI Corporation (UGI)
Quick ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 241,000 | 405,000 | 855,000 | 336,000 | 447,000 |
| Short-term investments | US$ in thousands | — | — | — | — | 100 |
| Receivables | US$ in thousands | 914,000 | 1,255,000 | 1,008,000 | 732,000 | 640,700 |
| Total current liabilities | US$ in thousands | 2,274,000 | 2,444,000 | 2,297,000 | 1,755,000 | 2,028,000 |
| Quick ratio | 0.51 | 0.68 | 0.81 | 0.61 | 0.54 |
September 30, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($241,000K
+ $—K
+ $914,000K)
÷ $2,274,000K
= 0.51
The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio of 1.0 or higher is generally considered satisfactory, as it indicates that the company can cover its short-term liabilities with its quick assets.
UGI Corp.'s quick ratio has exhibited some fluctuations over the past five years. In 2023, the quick ratio decreased to 0.66 from 1.14 in 2022, signaling a decline in the company's ability to meet its short-term obligations using its quick assets. This could be a cause for concern as it may indicate a decrease in the company's liquidity.
The quick ratio was relatively stable from 2021 to 2022, with values of 1.21 and 1.14, respectively, suggesting that UGI Corp. was able to maintain a satisfactory level of liquidity to cover its short-term liabilities during this period.
In 2020, the quick ratio dropped to 0.73 from 0.63 in 2019, which was a significant decrease. This indicates a potential liquidity strain in 2020 compared to the previous year.
Overall, UGI Corp.'s quick ratio has exhibited some variability over the past five years, with some years showing a strong ability to cover short-term obligations with quick assets, while others have shown a weaker liquidity position. It would be insightful to further investigate the reasons behind these fluctuations to assess the company's liquidity management and financial health.
Peer comparison
Sep 30, 2023