UGI Corporation (UGI)
Gross profit margin
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | -892,000 | 2,045,000 | 2,740,000 | 1,411,000 | 2,920,100 |
| Revenue | US$ in thousands | 8,928,000 | 10,106,000 | 7,447,000 | 6,559,000 | 7,320,000 |
| Gross profit margin | -9.99% | 20.24% | 36.79% | 21.51% | 39.89% |
September 30, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $-892,000K ÷ $8,928,000K
= -9.99%
The gross profit margin of UGI Corp. has shown a declining trend over the past five years, from 40.94% in 2019 to 22.30% in 2023. This indicates that the company's ability to generate profit from its core operations has weakened over this period.
The significant drop in gross profit margin from 64.90% in 2021 to 22.30% in 2023 is particularly noteworthy. This may suggest potential challenges in managing production costs, pricing strategy, or competitive pressures impacting the company's profitability. It is important for UGI Corp. to closely evaluate the reasons behind this substantial decline in gross profit margin and consider implementing strategies to address the underlying issues.
Peer comparison
Sep 30, 2023