UGI Corporation (UGI)
Operating return on assets (Operating ROA)
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 770,000 | -1,444,000 | 1,666,000 | 2,350,000 | 982,000 |
| Total assets | US$ in thousands | 15,098,000 | 15,401,000 | 17,575,000 | 16,723,000 | 13,985,000 |
| Operating ROA | 5.10% | -9.38% | 9.48% | 14.05% | 7.02% |
September 30, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $770,000K ÷ $15,098,000K
= 5.10%
UGI Corporation's operating return on assets (operating ROA) has exhibited fluctuations over the past five years. In fiscal year 2024, the operating ROA improved to 5.10%, signifying that the company generated 5.10 cents of operating income for every dollar of assets. This is a positive sign compared to the prior year, where the operating ROA was negative at -9.38%, indicating a loss relative to its asset base.
Looking further back, in fiscal year 2023, UGI Corporation reported a relatively high operating ROA of 9.48%, which demonstrated the company's effective utilization of assets to generate operating income. The trend continues in fiscal year 2022, with an even higher operating ROA of 14.05%, indicating strong operating performance.
However, in fiscal year 2021, there was a slight decline in the operating ROA to 7.02%, although it remained at a reasonable level. This fluctuation in operating ROA over the years suggests varying levels of efficiency in utilizing its assets to generate operating income.
In conclusion, UGI Corporation has experienced fluctuations in its operating return on assets in recent years, ranging from negative figures to double-digit percentages. It is essential for the company to focus on sustaining or improving its operating ROA to ensure efficient utilization of assets and maximize profitability.
Peer comparison
Sep 30, 2024