Air Products and Chemicals Inc (APD)

Fixed asset turnover

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Revenue	US$ in thousands	12,600,000	12,698,600	10,323,000	8,856,300	8,918,900
Property, plant and equipment	US$ in thousands	17,472,100	14,160,500	13,254,600	11,964,700	10,337,600
Fixed asset turnover		0.72	0.90	0.78	0.74	0.86

September 30, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $12,600,000K ÷ $17,472,100K
= 0.72

The fixed asset turnover ratio measures a company's ability to generate revenue from its investment in fixed assets. A higher ratio indicates greater efficiency in utilizing fixed assets to generate sales.

Looking at the trend for Air Products & Chemicals Inc., we see that the fixed asset turnover has fluctuated over the past five years. In 2023, the ratio decreased to 0.72 from 0.90 in 2022, indicating a decrease in the company's ability to generate sales from its fixed assets. This decrease may be attributed to various factors such as changes in production processes, asset utilization, or sales volume.

Furthermore, the 2023 ratio of 0.72 is the lowest among the five years, suggesting a relative decline in the company's efficiency in generating sales from its fixed assets. This trend warrants further investigation into the company's asset management and operational efficiency.

Overall, the declining trend in fixed asset turnover for Air Products & Chemicals Inc. raises concerns about the company's ability to efficiently utilize its fixed assets to generate sales in recent years. It is important for the company to assess and address the factors contributing to this decline in order to improve its overall operational efficiency and asset utilization.