Air Products and Chemicals Inc (APD)
Inventory turnover
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 9,238,600 | 9,344,400 | 9,471,800 | 9,902,300 | 10,103,400 | 7,668,400 | 7,859,000 | 7,518,000 | 7,467,700 | 9,668,700 | 9,124,900 | 8,702,100 | 8,080,800 | 7,372,600 | 6,702,300 | 6,206,600 | 5,858,100 | 5,782,400 | 5,903,500 | 5,918,100 |
| Inventory | US$ in thousands | 766,000 | 755,600 | 721,200 | 709,300 | 651,800 | 663,900 | 645,600 | 635,300 | 514,200 | 514,000 | 507,500 | 487,200 | 453,900 | 447,200 | 430,300 | 422,900 | 404,800 | 410,900 | 399,700 | 400,600 |
| Inventory turnover | 12.06 | 12.37 | 13.13 | 13.96 | 15.50 | 11.55 | 12.17 | 11.83 | 14.52 | 18.81 | 17.98 | 17.86 | 17.80 | 16.49 | 15.58 | 14.68 | 14.47 | 14.07 | 14.77 | 14.77 |
September 30, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $9,238,600K ÷ $766,000K
= 12.06
Air Products and Chemicals Inc's inventory turnover has shown consistent improvement over the past five years, indicating good management of inventory levels. The inventory turnover ratio has been steadily increasing from 14.77 in Dec 2019 to 12.06 in Sep 2024. This suggests that the company is turning over its inventory more frequently, which can be a positive sign of efficient inventory management and potential cost savings.
The latest inventory turnover ratio of 12.06 in Sep 2024 indicates that the company is able to sell and replace its inventory approximately 12 times during the year. A higher inventory turnover ratio generally signifies that a company is effectively managing its inventory levels, keeping stock levels lean, and minimizing the risk of obsolete inventory.
Overall, the increasing trend in Air Products and Chemicals Inc's inventory turnover ratio reflects a positive performance in terms of managing its inventory efficiently, which can contribute to improving the company's profitability and cash flow.
Peer comparison
Sep 30, 2024
Sep 30, 2024
See also:
Air Products and Chemicals Inc Inventory Turnover (Quarterly Data)