UGI Corporation (UGI)

Solvency ratios

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
Debt-to-assets ratio 0.43 0.44 0.44 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
Debt-to-capital ratio 0.60 0.59 0.59 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
Debt-to-equity ratio 1.48 1.42 1.42 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
Financial leverage ratio 3.47 3.22 3.24 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

UGI Corporation's solvency ratios show that the company has maintained relatively stable levels of debt compared to its assets, capital, and equity over the past few quarters. The debt-to-assets ratio has hovered around 0.40 to 0.45 range, indicating that approximately 40-45% of the company's assets are financed by debt. The debt-to-capital and debt-to-equity ratios have also remained fairly consistent between 0.50 to 0.60 and 1.30 to 1.50, respectively, reflecting that the company's capital structure has remained relatively balanced between debt and equity financing.

The financial leverage ratio, which indicates the proportion of assets that are financed by debt compared to equity, has fluctuated slightly but generally stayed within the range of 3.00 to 3.60. This suggests that the company relies more heavily on debt financing than equity. While the ratios are within a reasonable range, investors and creditors may want to monitor any potential increases in leverage that could indicate higher risk for the company's financial stability.

Coverage ratios

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
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

Interest coverage ratio is a measure of a company's ability to meet its interest payments on outstanding debt. A higher interest coverage ratio indicates a company is more capable of servicing its debt. Looking at the trend in UGI Corporation's interest coverage ratio over the past few quarters, we can see fluctuations. The ratio was positive and healthy in some quarters, such as in Jun 2022 (6.72) and Mar 2022 (7.56), indicating strong ability to cover interest expenses.

However, there were also periods of lower interest coverage ratios, including negative ratios in some quarters like Dec 2023 (-0.02) and Sep 2023 (-3.85). These negative ratios suggest that the company's operating income was insufficient to cover its interest expenses during those periods.

Overall, monitoring UGI Corporation's interest coverage ratio trends is crucial for assessing its financial health and ability to meet its debt obligations. An improving trend in interest coverage ratio over time would indicate a strengthening of the company's ability to service its debt.