UGI Corporation (UGI)
Quick ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 213,000 | 241,000 | 405,000 | 855,000 | 336,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 765,000 | 914,000 | 1,255,000 | 1,008,000 | 732,000 |
| Total current liabilities | US$ in thousands | 2,060,000 | 2,274,000 | 2,444,000 | 2,297,000 | 1,755,000 |
| Quick ratio | 0.47 | 0.51 | 0.68 | 0.81 | 0.61 |
September 30, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($213,000K
+ $—K
+ $765,000K)
÷ $2,060,000K
= 0.47
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 higher quick ratio indicates a stronger liquidity position and suggests that the company can more easily cover its short-term liabilities.
Looking at UGI Corporation's quick ratio over the past five years, we can see a declining trend. The quick ratio decreased from 0.61 in 2020 to 0.47 in 2024. This indicates a potential deterioration in UGI's ability to cover its short-term obligations using its quick assets.
In 2022, UGI had a quick ratio of 0.68, which was the highest among the years provided. This implies that UGI had a better liquidity position in 2022 compared to the other years. However, the subsequent decline in the quick ratio suggests that UGI's ability to meet its short-term obligations may have weakened in the following years.
Overall, the declining trend in UGI's quick ratio raises concerns about its liquidity position and ability to meet its short-term obligations. Further analysis of the company's current assets and liabilities is recommended to better understand the factors contributing to this trend and to assess the company's overall financial health.
Peer comparison
Sep 30, 2024