Air Products and Chemicals Inc (APD)
Fixed asset turnover
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 12,422,700 | 12,600,000 | 12,978,700 | 13,134,100 | 12,879,100 | 12,698,600 | 11,969,700 | 11,385,100 | 10,942,000 | 10,323,000 | 9,802,000 | 9,262,500 | 8,976,800 | 8,856,300 | 8,819,400 | 8,978,200 | 8,949,600 | 8,918,900 | 8,934,600 | 8,969,600 |
| Property, plant and equipment | US$ in thousands | 18,935,500 | 17,472,100 | 16,512,800 | 15,698,400 | 15,039,200 | 14,160,500 | 14,131,700 | 14,095,200 | 13,624,700 | 13,254,600 | 13,035,600 | 12,628,300 | 12,517,100 | 11,964,700 | 11,468,900 | 10,623,700 | 10,692,200 | 10,337,600 | 10,427,600 | 10,193,800 |
| Fixed asset turnover | 0.66 | 0.72 | 0.79 | 0.84 | 0.86 | 0.90 | 0.85 | 0.81 | 0.80 | 0.78 | 0.75 | 0.73 | 0.72 | 0.74 | 0.77 | 0.85 | 0.84 | 0.86 | 0.86 | 0.88 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $12,422,700K ÷ $18,935,500K
= 0.66
Air Products & Chemicals Inc.'s fixed asset turnover has been showing a downward trend over the past eight quarters. The ratio was at its peak in Q1 2023 at 0.86 and has been gradually declining since then. In the most recent quarter, Q1 2024, the fixed asset turnover ratio was at 0.66, indicating that the company generated $0.66 in revenue for every $1 of fixed assets.
The decreasing trend in fixed asset turnover could suggest inefficiencies in utilizing the company's fixed assets to generate revenue. It may indicate that either the sales are decreasing relative to the investment in fixed assets or that the company has been investing more heavily in fixed assets without a proportional increase in revenue generation. This trend warrants further investigation to understand whether it is due to operational challenges, changes in market dynamics, or strategic decisions by the company management. Potential actions could include optimizing asset utilization, exploring alternative investment strategies, or reassessing the company's overall business strategy.
Peer comparison
Dec 31, 2023
See also:
Air Products and Chemicals Inc Net Fixed Asset Turnover (Quarterly Data)