Asset Breakdown
9.2 B
Assets Non Current
2.5 B
Goodwill
Current Assets
| Total Assets | 10.58 Billion | |
| Current Assets | 1.39 Billion | |
| Assets Non Current | 9.15 Billion | |
| Goodwill | 2.54 Billion | |
| Tax Assets | 9.21 Million |
You think UGI (NYSE:UGI) debt is an issue for stockholders?
 | By Raphi Shpitalnik | Macroaxis Story |
UGI Corporation is scheduled to announce its earnings tomorrow. The upcoming quarterly report is expected on the 3rd of August 2020. UGI Earnings Before Interest Taxes and Depreciation Amortization EBITDA are most likely to increase significantly in the upcoming years. The last year's value of Earnings Before Interest Taxes and Depreciation Amortization EBITDA was reported at 982.53 Million. The current Average Equity is estimated to increase to about 2.8 B, while Average Assets are projected to decrease to roughly 7.9 B. As many baby boomers are still indifferent towards utilities space, it makes sense to concentrate on UGI Corporation as a unique choice for millenniums. We will check if the company can maintain a respectable level of debt while minimizing operating losses.
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Reviewed by Michael Smolkin
UGI Corporation has 6.92 B in debt with debt to equity (D/E) ratio of 1.69, which is OK given its current industry classification. On a scale of 0 to 100, UGI holds a performance score of 5. The entity has a beta of -0.0706, which indicates not very significant fluctuations relative to the market. Let's try to break down what UGI's beta means in this case. As returns on the market increase, returns on owning UGI are expected to decrease at a much lower rate. During the bear market, UGI is likely to outperform the market. Although it is vital to follow UGI Corporation current price movements, it is good to be conservative about what you can do with the information regarding equity historical returns. The approach towards measuring future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By examining UGI Corporation technical indicators, you can now evaluate if the expected return of 0.25% will be sustainable into the future. Please operates UGI coefficient of variation, treynor ratio, as well as the relationship between the Treynor Ratio and semi variance to make a quick decision on whether UGI Corporation existing price patterns will revert. UGI financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of UGI, including all of UGI's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of UGI assets, the company is considered highly leveraged. Understanding the composition and structure of overall UGI debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.
Understanding UGI Total Debt
UGI Corporation liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. UGI Corporation has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on UGI balance sheet include debt obligations and money owed to different UGI vendors, workers, and loan providers. Below is the chart of UGI main long-term debt accounts currently reported on its balance sheet. You can use UGI Corporation financial leverage analysis tool to get a better grip on understanding its financial positionHow important is UGI's Liquidity
UGI financial leverage refers to using borrowed capital as a funding source to finance UGI Corporation ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. UGI financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to UGI's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of UGI's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between UGI's total debt and its cash.
What is driving UGI Investor Appetite?
The entity reported the last year's revenue of 6.75 B. Total Income to common stockholders was 384.1 M with profit before taxes, overhead, and interest of 3 B.
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This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of UGI Corporation. Please refer to our Terms of Use for any information regarding our disclosure principles.