UGI Corporation (UGI)
Interest coverage
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 770,000 | -1,458,000 | 1,715,000 | 2,299,000 | 989,000 |
| Interest expense | US$ in thousands | 394,000 | 379,000 | 329,000 | 310,000 | 322,000 |
| Interest coverage | 1.95 | -3.85 | 5.21 | 7.42 | 3.07 |
September 30, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $770,000K ÷ $394,000K
= 1.95
The interest coverage ratio of UGI Corporation has shown significant fluctuations over the past five years. In Sep 2024, the interest coverage ratio stands at 1.95, indicating that the company's operating income is nearly sufficient to cover its interest expenses. However, in Sep 2023, the ratio was negative at -3.85, suggesting that the company's operating income was insufficient to cover its interest expenses during that period.
In Sep 2022, the interest coverage ratio improved significantly to 5.21, indicating a strong ability to meet interest obligations. This was further reinforced in Sep 2021 with an even higher ratio of 7.42, demonstrating a healthy cushion to cover interest expenses.
However, in Sep 2020, the interest coverage ratio decreased to 3.07 from the previous year, showing a slight decline in the company's ability to cover interest payments.
Overall, UGI Corporation's interest coverage has shown variability over the years, with fluctuations impacting the company's ability to cover interest expenses. It is important for stakeholders to monitor this ratio closely to assess the company's financial health and its ability to meet debt obligations.
Peer comparison
Sep 30, 2024