UGI Corporation (UGI)
Interest coverage
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 770,000 | 1,271,000 | 465,000 | -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 |
| Interest expense (ttm) | US$ in thousands | 296,000 | 394,000 | 394,000 | 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 |
| Interest coverage | 2.60 | 3.23 | 1.18 | -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 |
September 30, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $770,000K ÷ $296,000K
= 2.60
The interest coverage ratio for UGI Corporation has exhibited fluctuations over the past several quarters. An interest coverage ratio greater than 1 indicates that the company is generating enough operating income to cover its interest expenses.
In the most recent quarter, ending September 30, 2024, the interest coverage stood at 2.60, showing an improvement from the previous quarter's 3.23. This suggests that the company's operating income was able to cover its interest payments 2.60 times over.
Looking back over previous quarters, there have been periods of both improvement and deterioration in the interest coverage ratio. Notably, in December 2023, the ratio was negative (-0.02) indicating that the company's operating income was insufficient to cover its interest expenses.
It's important for stakeholders to monitor these fluctuations in the interest coverage ratio as it indicates the company's ability to meet its debt obligations from the operating income generated. A consistently low or negative interest coverage ratio could potentially signify financial distress and the need for the company to address its debt levels or improve its operational performance.
Peer comparison
Sep 30, 2024