Earnings Analysis for UGI’s Last 3 Years
1. Revenue Analysis
Total and Operating Revenue: UGI has experienced fluctuations in its total and operating revenue over the last three years, with a notable increase in the most recent quarter (2024-03-31) at $2,467,000,000 compared to $2,121,000,000 in 2023-12-31 and $1,404,000,000 in 2023-09-30. This reaffirms growth in operational scale despite earlier contractions such as the $1,659,000,000 in 2023-06-30 and $3,106,000,000 in 2023-03-31.
Gross Profit: Gross profit followed a similar trend, peaking at $1,437,000,000 in the most current quarter from lower figures such as $919,000,000 and lesser in prior periods, demonstrating improvement in revenue generation efficiency relative to direct costs.
2. Cost Management
Cost of Revenue: The cost of revenue varied, with a significant cost of $2,148,000,000 in 2023-03-31, down to $1,030,000,000 in the latest quarter (2024-03-31). This reduction indicates improved cost efficiency in revenue-generating processes.
Operating Expense: Operating expenses have also seen a reduction, though not consistently, with $720,000,000 logged in the latest available period compared to higher figures in the prior year, underscoring efforts in operational efficiency.
Total Expenses: Total expenses topped at $2,851,000,000 in 2023-03-31 but lessened considerably to $1,750,000,000 in the latest figures, reflecting comprehensive cost management strategies.
3. Profitability Analysis
EBITDA: EBITDA at $867,000,000 in the latest quarter indicates a recovery and growth compared to earlier figures of $357,000,000 in 2023-12-31 and negative figures in 2023-06-30, reflecting stronger operational profitability.
Operating Income: There was a notable rebound in operating income, reaching $717,000,000 in the latest quarter, reflecting operational improvements and recovery from previous lows.
Pretax Income: Pretax income saw fluctuations but stood at $629,000,000 in the latest quarter, again indicating a healthy profitability before tax impacts.
Net Income: Net income recovered significantly to $496,000,000 in the latest quarter from as low a figure as $94,000,000 in prior periods, denoting recovery in net profitability.
4. Cash Flow Indicators
Reconciled Depreciation: Depreciation expenses remained relatively stable, suggesting consistent accounting for asset wear and tear over the years.
Interest Expense: Interest expenses were consistently recognized, impacting cash flows but indicating stable finance management under debt conditions.
5. Taxation
Tax Rate: Tax rates showed variability with a particularly high figure in one quarter but normalized close to 21.15% most recently, illustrating typical fiscal obligations relative to earnings.
Tax Provision: The tax provision has seen variability but remained substantial, pointing to significant fiscal contributions tied to operational profits.
Tax Effect of Unusual Items: The tax impact of unusual items was minimal in most data points, suggesting that most earnings components were regular operational results.
6. Shareholder Metrics
Diluted and Basic EPS: Both EPS measures recovered well in the latest data, ensuring reasonable returns to shareholders after previous dips.
Average Shares: Average shares outstanding have remained relatively consistent indicating stability in capital structure.
Net Income Available to Common Stockholders: Consistent with net income trends, profits available to common stockholders showed healthful recovery.
7. Conclusion
The analysis underscores a general recovery in financial health for UGI over the past three years, with particular strength shown in the latest quarters. Revenue efficiency improvements alongside effective cost management strategies have bolstered profitability metrics considerably. Recommendations going forward would include maintaining stringent cost controls, exploring further avenues for operational efficiencies, and leveraging market opportunities for revenue enhancement.