UGI Corporation (UGI)
Profitability ratios
Return on sales
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | -9.99% | 20.24% | 36.79% | 21.51% | 39.89% |
| Operating profit margin | -16.17% | 16.49% | 31.56% | 14.97% | 8.43% |
| Pretax margin | -20.58% | 13.71% | 26.71% | 10.17% | 4.77% |
| Net profit margin | -16.82% | 10.62% | 19.70% | 8.11% | 3.50% |
Based on the data provided, UGI Corp.'s profitability has fluctuated over the past five years. The gross profit margin has experienced a declining trend, dropping from 64.90% in 2021 to 22.30% in 2023. This suggests a significant decrease in the company's ability to generate profit from its core operations.
Similarly, the operating profit margin has also shown a declining trend, with a negative operating profit margin of -7.83% in 2023. This indicates that the company's operating expenses have outpaced its operating income, resulting in a loss from operations.
The pretax margin has also exhibited a downward trend, reaching -20.58% in 2023, reflecting the impact of increased non-operating expenses or losses on the company's overall profitability.
The net profit margin, which represents the company's bottom line profitability, has also decreased significantly, recording a negative net profit margin of -16.82% in 2023. This indicates that UGI Corp. is experiencing challenges in generating profits after accounting for all expenses, including taxes and interest.
In conclusion, the declining profitability margins of UGI Corp. raise concerns about the company's ability to maintain sustainable profitability in the future. Investors and stakeholders may need to closely monitor the company's performance and the effectiveness of its cost management strategies.
Return on investment
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -9.38% | 9.48% | 14.05% | 7.02% | 4.62% |
| Return on assets (ROA) | -9.75% | 6.11% | 8.77% | 3.80% | 1.92% |
| Return on total capital | -13.34% | 13.67% | 19.38% | 9.78% | 6.32% |
| Return on equity (ROE) | -34.25% | 17.69% | 26.57% | 12.89% | 6.71% |
Based on the profitability ratios of UGI Corp., there are several notable trends.
Firstly, the operating return on assets (Operating ROA) has exhibited considerable variability over the past five years, ranging from a high of 13.86% in 2021 to a low of -4.54% in 2023. This suggests fluctuations in the company's ability to generate operating income relative to its total assets.
Similarly, the return on assets (ROA) has also fluctuated, with a low of -9.75% in 2023 and a high of 8.77% in 2021. This metric provides insight into the company's overall profitability in relation to its total assets, and the variability may indicate changes in the company's efficiency and effectiveness in utilizing its assets to generate earnings.
Moreover, the return on total capital shows a similar pattern of variability, ranging from a low of -5.99% in 2023 to a high of 18.27% in 2021. This metric reflects the company's overall ability to generate returns for both equity and debt holders and indicates fluctuations in the efficiency of capital utilization.
Furthermore, the return on equity (ROE) has shown substantial variability, with a low of -34.25% in 2023 and a high of 26.57% in 2021. This metric reflects the company's ability to generate profits from shareholders' equity and indicates fluctuations in the company's ability to reward its equity investors.
In summary, the profitability ratios of UGI Corp. demonstrate significant variability over the past five years, suggesting fluctuations in the company's overall profitability, efficiency in asset and capital utilization, and ability to reward its equity investors.