Air Products and Chemicals Inc (APD)

Inventory turnover

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Cost of revenue	US$ in thousands	9,238,600	10,103,400	10,396,500	8,080,800	5,858,100
Inventory	US$ in thousands	766,000	651,800	514,200	453,900	404,800
Inventory turnover		12.06	15.50	20.22	17.80	14.47

September 30, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $9,238,600K ÷ $766,000K
= 12.06

The inventory turnover ratio for Air Products and Chemicals Inc has exhibited a decreasing trend over the past five years. In 2024, the ratio stands at 12.06, lower than the previous year's 15.50, indicating a reduction in the company's ability to sell through its inventory efficiently compared to the prior year. While the current ratio is still at a relatively healthy level, it is important to note the downward trajectory, which could suggest potential issues with inventory management or sales performance. Further investigation into the reasons behind this decrease would be beneficial to ensure optimal inventory utilization and financial performance in the future.