Air Products and Chemicals Inc (APD)

Days of inventory on hand (DOH)

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Inventory turnover		12.06	15.50	20.22	17.80	14.47
DOH	days	30.26	23.55	18.05	20.50	25.22

September 30, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 12.06
= 30.26

The days of inventory on hand (DOH) for Air Products and Chemicals Inc have shown variation over the past five years.

In Sep 2020, the company had 25.22 days of inventory on hand, which decreased to 20.50 days in Sep 2021. This signifies that the company managed to reduce its level of inventory or sell its inventory at a faster rate in 2021 compared to the previous year.

However, in Sep 2022, the DOH increased to 18.05 days, indicating that the company had a higher level of inventory on hand relative to its sales during that period.

The trend reversed in Sep 2023 as the DOH increased significantly to 23.55 days, suggesting that the company might have faced challenges in managing its inventory efficiently during that year.

Finally, in Sep 2024, the DOH rose further to 30.26 days, reaching the highest level in the past five years. This may indicate a potential slowdown in sales or challenges in inventory management, which could lead to increased carrying costs and potential obsolescence risks for the company.

Overall, fluctuations in Air Products and Chemicals Inc's days of inventory on hand over the five-year period suggest varying levels of inventory management effectiveness and operational efficiency within the company.