Air Products and Chemicals Inc (APD)

Number of days of payables

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Payables turnover		6.36	8.33	9.28	10.97	10.73
Number of days of payables	days	57.35	43.82	39.35	33.28	34.03

September 30, 2024 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 6.36
= 57.35

The number of days of payables for Air Products and Chemicals Inc has shown an increasing trend over the past five years, ranging from 34.03 days in 2020 to 57.35 days in 2024. This indicates that the company is taking longer to pay off its suppliers over time.

A higher number of days of payables can suggest that the company is taking advantage of credit terms provided by its suppliers or that it is facing cash flow challenges. It may also reflect a deliberate strategy to manage working capital more effectively.

The significant increase in days of payables from 2020 to 2024 (from 34.03 days to 57.35 days) raises a red flag as it indicates a substantial extension in the amount of time the company is taking to settle its payables. This trend should be closely monitored to ensure that it does not indicate underlying financial difficulties or potential liquidity risks for the company.