UGI Corporation (UGI)

Interest coverage

Sep 30, 2023 Sep 30, 2022 Sep 30, 2021 Sep 30, 2020 Sep 30, 2019
Earnings before interest and tax (EBIT) US$ in thousands -1,458,000 1,715,000 2,299,000 989,000 607,000
Interest expense US$ in thousands 379,000 329,000 310,000 322,000 258,000
Interest coverage -3.85 5.21 7.42 3.07 2.35

September 30, 2023 calculation

Interest coverage = EBIT ÷ Interest expense
= $-1,458,000K ÷ $379,000K
= -3.85

Based on the provided data, UGI Corp.'s interest coverage ratio has fluctuated over the past five years. In 2023, the interest coverage ratio notably declined to -1.96, indicating that the company's operating income was insufficient to cover its interest expenses. This may raise concerns about UGI Corp.'s ability to meet its debt obligations.

In contrast, the interest coverage ratio was healthier in 2022 and 2021, standing at 5.06 and 7.69, respectively. This suggests that the company's operating income was relatively strong enough to cover its interest expenses during these years.

However, in 2020 and 2019, the interest coverage ratio was 3.35 and 2.52, respectively, indicating a moderate ability to cover interest payments.

Overall, the fluctuation in UGI Corp.'s interest coverage ratio over the past five years may reflect changes in the company's operating performance and the cost of debt. It's essential to closely monitor this ratio to assess UGI Corp.'s ability to service its debt and manage financial risk.


Peer comparison

Sep 30, 2023

Company name
Symbol
Interest coverage
UGI Corporation
UGI
-3.85
Sempra Energy
SRE
3.72