UGI Corporation (UGI)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.44 | 0.42 | 0.44 | 0.41 | 0.39 | 0.37 | 0.38 | 0.37 | 0.39 | 0.38 | 0.39 | 0.40 | 0.41 | 0.43 | 0.44 | 0.42 | 0.41 | 0.43 | 0.36 | 0.35 |
| Debt-to-capital ratio | 0.61 | 0.60 | 0.60 | 0.57 | 0.57 | 0.52 | 0.52 | 0.51 | 0.55 | 0.53 | 0.54 | 0.56 | 0.58 | 0.59 | 0.59 | 0.59 | 0.60 | 0.60 | 0.53 | 0.53 |
| Debt-to-equity ratio | 1.55 | 1.49 | 1.53 | 1.31 | 1.30 | 1.07 | 1.08 | 1.06 | 1.23 | 1.15 | 1.16 | 1.25 | 1.37 | 1.45 | 1.46 | 1.44 | 1.48 | 1.51 | 1.14 | 1.13 |
| Financial leverage ratio | 3.55 | 3.51 | 3.49 | 3.16 | 3.31 | 2.90 | 2.85 | 2.87 | 3.14 | 3.03 | 2.94 | 3.10 | 3.32 | 3.39 | 3.36 | 3.46 | 3.58 | 3.50 | 3.15 | 3.21 |
The solvency ratios of UGI Corp. indicate the firm's ability to meet its long-term financial obligations and assess its leverage levels.
The debt-to-assets ratio has remained relatively stable around 0.45-0.47 range, indicating that roughly 45-47% of the company's assets are financed through debt. This suggests a moderate level of risk as the company relies significantly on debt funding compared to its total assets.
The debt-to-capital ratio has also shown consistency around 0.60, indicating that 60% of the company's capital structure is financed through debt. This ratio reflects the company's reliance on debt to fund its operations and expansion activities.
The debt-to-equity ratio has exhibited an upward trend from 1.12 to 1.67, indicating a higher level of debt relative to equity. This may suggest increased financial risk and potential difficulties in repaying debt obligations.
The financial leverage ratio has generally increased over the periods, from 2.85 to 3.55, indicating that the company has been utilizing more debt to finance its operations. This increase in leverage may amplify both returns and risks for the company's shareholders.
Overall, while UGI Corp. has maintained stable debt-to-assets and debt-to-capital ratios, the increasing trend in the debt-to-equity ratio and financial leverage ratio suggests a growing reliance on debt financing, which could potentially increase the company's financial risk in the long run.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The interest coverage ratio measures a company's ability to cover its interest expenses with its operating income. A higher ratio indicates a stronger ability to meet interest obligations.
In Q1 2024, UGI Corp. had an interest coverage ratio of 1.57, which implies that the company generated enough operating income to cover its interest expenses, although with a relatively narrow margin.
In the previous quarter, Q4 2023, the interest coverage ratio took a negative turn, dropping to -1.96. This suggests that UGI Corp.'s operating income was insufficient to cover its interest expenses during that period, indicating potential financial strain.
Similarly, in Q3 2023 and Q2 2023, the interest coverage ratios remained negative at -1.63 and -1.30 respectively, signaling ongoing challenges in meeting interest payment obligations.
However, the company showed improved performance in Q1 2023 with an interest coverage ratio of 2.02, indicating a better ability to meet interest expenses.
The highest interest coverage ratios were observed in Q4 2022, Q3 2022, and Q2 2022, with ratios of 5.06, 6.74, and 7.74 respectively. During these periods, UGI Corp. demonstrated a strong ability to cover its interest expenses with its operating income.
Overall, the fluctuating trend in UGI Corp.'s interest coverage ratios over the analyzed periods suggests a variable ability to meet interest obligations, with some quarters showing strength while others indicating potential financial challenges. It is important for investors and stakeholders to closely monitor this ratio to assess the company's financial health and ability to service its debts.