UGI Corporation (UGI)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -7,000 | -1,458,000 | -1,357,000 | -544,000 | 546,000 | 1,715,000 | 2,163,000 | 2,395,000 | 1,747,000 | 2,299,000 | 1,553,000 | 1,424,000 | 1,107,000 | 989,000 | 936,500 | 815,800 | 831,400 | 607,000 | 650,700 | 623,900 |
| Interest expense (ttm) | US$ in thousands | 387,000 | 379,000 | 365,000 | 351,000 | 340,000 | 329,000 | 322,000 | 317,000 | 313,000 | 310,000 | 308,000 | 311,000 | 316,000 | 322,000 | 323,300 | 303,800 | 281,800 | 258,000 | 239,000 | 235,000 |
| Interest coverage | -0.02 | -3.85 | -3.72 | -1.55 | 1.61 | 5.21 | 6.72 | 7.56 | 5.58 | 7.42 | 5.04 | 4.58 | 3.50 | 3.07 | 2.90 | 2.69 | 2.95 | 2.35 | 2.72 | 2.65 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-7,000K ÷ $387,000K
= -0.02
The interest coverage ratio for UGI Corp. has fluctuated significantly over the past eight quarters. In Q1 2024, the interest coverage ratio was 1.57, indicating that the company earned 1.57 times the amount required to cover its interest expense. However, in Q4 2023, Q3 2023, and Q2 2023, the interest coverage ratios were negative, with Q4 2023 having a particularly low ratio of -1.96. These negative ratios suggest that UGI Corp. did not generate enough operating income to cover its interest expenses during those quarters, which could be a cause for concern.
On a more positive note, in Q1 2023, the interest coverage ratio improved significantly to 2.02, indicating a healthier financial position. This improvement was also evident in Q4 2022, Q3 2022, and Q2 2022, where the interest coverage ratios were 5.06, 6.74, and 7.74 respectively, showing a trend of strong ability to cover interest expenses with operating income during that period.
Overall, the fluctuation in UGI Corp.'s interest coverage ratios over the quarters indicates varying levels of financial health and ability to meet interest obligations. It would be important for stakeholders to closely monitor this metric to ensure the company's financial stability and ability to service its debt effectively.
Peer comparison
Dec 31, 2023