UGI Corporation (UGI)
Operating profit margin
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | -1,444,000 | 1,666,000 | 2,350,000 | 982,000 | 617,000 |
| Revenue | US$ in thousands | 8,928,000 | 10,106,000 | 7,447,000 | 6,559,000 | 7,320,000 |
| Operating profit margin | -16.17% | 16.49% | 31.56% | 14.97% | 8.43% |
September 30, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $-1,444,000K ÷ $8,928,000K
= -16.17%
The operating profit margin of UGI Corp. has exhibited significant fluctuations over the past five years. In 2023, the operating profit margin experienced a substantial decline to -7.83%, marking a negative profitability ratio. This contrasts starkly with the previous year, 2022, when the operating profit margin was robust at 15.70%. The operating profit margin was also notably high in 2021, at 31.11%, before moderating to 15.47% in 2020 and 8.01% in 2019.
The drastic shift to a negative operating profit margin in 2023 raises concerns about UGI Corp.'s ability to generate profits from its core business activities. It is important for investors and stakeholders to closely examine the company's cost structure and revenue generation in order to understand the factors contributing to this decline in operating profit margin. Moreover, management's strategies and operational efficiency should be thoroughly assessed to determine the sustainability of UGI Corp.'s profitability in the future.
Peer comparison
Sep 30, 2023