UGI Corporation (UGI)
Debt-to-equity ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 6,866,000 | 6,543,000 | 6,682,000 | 6,805,000 | 6,759,000 | 6,483,000 | 6,483,000 | 6,559,000 | 6,580,000 | 6,339,000 | 5,890,000 | 6,046,000 | 6,078,000 | 5,981,000 | 6,036,000 | 5,879,000 | 5,906,000 | 5,780,000 | 4,347,100 | 4,341,200 |
| Total stockholders’ equity | US$ in thousands | 4,423,000 | 4,386,000 | 4,364,000 | 5,205,000 | 5,180,000 | 6,066,000 | 5,996,000 | 6,200,000 | 5,349,000 | 5,522,000 | 5,097,000 | 4,819,000 | 4,437,000 | 4,128,000 | 4,126,000 | 4,081,000 | 3,996,000 | 3,817,000 | 3,820,900 | 3,853,000 |
| Debt-to-equity ratio | 1.55 | 1.49 | 1.53 | 1.31 | 1.30 | 1.07 | 1.08 | 1.06 | 1.23 | 1.15 | 1.16 | 1.25 | 1.37 | 1.45 | 1.46 | 1.44 | 1.48 | 1.51 | 1.14 | 1.13 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $6,866,000K ÷ $4,423,000K
= 1.55
The debt-to-equity ratio for UGI Corp. has shown a slight increasing trend over the past eight quarters, starting at 1.12 in Q2 2022 and reaching 1.67 in Q1 2024. This indicates that the company has been relying more on debt in relation to its equity over this period.
The ratio being above 1 suggests that UGI Corp. is primarily financed by debt rather than equity. A higher debt-to-equity ratio can indicate increased financial risk as the company has more debt obligations to fulfill. However, it can also imply that the company is utilizing debt to finance growth opportunities or investments.
It is important to further analyze the reasons behind the increasing debt-to-equity ratio and assess if the company's debt levels are sustainable in the long term. This ratio should be considered in conjunction with other financial metrics and industry benchmarks to gain a comprehensive understanding of UGI Corp.'s financial position and performance.
Peer comparison
Dec 31, 2023