UGI Corporation (UGI)
Financial leverage ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 15,098,000 | 15,401,000 | 17,575,000 | 16,723,000 | 13,985,000 |
| Total stockholders’ equity | US$ in thousands | 4,345,000 | 4,386,000 | 6,066,000 | 5,522,000 | 4,128,000 |
| Financial leverage ratio | 3.47 | 3.51 | 2.90 | 3.03 | 3.39 |
September 30, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $15,098,000K ÷ $4,345,000K
= 3.47
The financial leverage ratio measures the extent to which a company is utilizing debt to finance its operations compared to equity. UGI Corporation's financial leverage ratio has fluctuated over the past five years, ranging from 2.90 to 3.51. A higher financial leverage ratio indicates a higher proportion of debt in the company's capital structure.
In 2024, UGI Corporation's financial leverage ratio stood at 3.47, a slight decrease from the previous year's ratio of 3.51. This implies that the company's reliance on debt to fund its operations decreased slightly in 2024. However, it is still higher than the ratios reported in 2022 and 2021, indicating a relatively higher level of leverage in the current year.
Overall, UGI Corporation's financial leverage ratio has shown fluctuations over the past five years, suggesting varying levels of debt usage in the company's capital structure. It is important for investors and analysts to monitor changes in the financial leverage ratio to assess the company's financial risk and solvency position. The trend in the financial leverage ratio may indicate the company's ability to meet its financial obligations and manage potential risks associated with debt.
Peer comparison
Sep 30, 2024