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

Company name
Symbol
Quick ratio
UGI Corporation
UGI
0.51
Sempra Energy
SRE
0.25