Air Products and Chemicals Inc (APD)

Activity ratios

Short-term

Turnover ratios

	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
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
Receivables turnover	6.00	7.07	7.08	7.20	6.43	6.71	6.97	6.65	6.87	6.51	5.95	6.00	6.70	6.37	6.18	5.89	6.47	5.22	5.60	6.95
Payables turnover	6.36	—	—	—	8.33	—	—	—	6.66	—	—	—	10.97	—	—	—	10.73	—	—	—
Working capital turnover	5.54	10.06	6.09	4.91	9.66	9.23	4.49	4.23	4.51	4.04	3.74	2.84	1.85	1.73	1.61	1.54	1.41	1.37	3.12	3.09

The activity ratios of Air Products and Chemicals Inc provide insights into the efficiency of the company in managing its assets and liabilities to generate sales.

- Inventory turnover has been consistently high, indicating that the company efficiently manages its inventory levels and converts them into sales quickly. This may suggest effective inventory management practices and good demand for its products.

- Receivables turnover has shown some fluctuations but generally remains at a moderate level, indicating that the company is efficient in collecting payments from customers. However, the trend suggests some variation in the collection efficiency over time.

- Payables turnover data is not available for some periods, making it challenging to assess the efficiency of the company in managing its payables. When data is available, the turnover rate appears to be moderate, indicating a reasonable balance between paying suppliers and managing cash flow.

- Working capital turnover has experienced fluctuations, reflecting the company's ability to generate sales relative to its working capital. A higher turnover ratio implies better efficiency in utilizing working capital to drive sales, but the fluctuating trend suggests varying levels of operational efficiency over time.

In summary, Air Products and Chemicals Inc demonstrates strong inventory turnover and moderate performance in receivables turnover and payables turnover. However, the working capital turnover shows some variability, indicating that the company may need to focus on optimizing its working capital management for sustained operational efficiency.

Average number of days

		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
Days of inventory on hand (DOH)	days	30.26	29.51	27.79	26.14	23.55	31.60	29.98	30.84	25.13	19.40	20.30	20.44	20.50	22.14	23.43	24.87	25.22	25.94	24.71	24.71
Days of sales outstanding (DSO)	days	60.86	51.63	51.53	50.70	56.78	54.40	52.38	54.90	53.16	56.07	61.34	60.84	54.50	57.32	59.07	61.99	56.45	69.93	65.23	52.55
Number of days of payables	days	57.35	—	—	—	43.82	—	—	—	54.78	—	—	—	33.28	—	—	—	34.03	—	—	—

Air Products and Chemicals Inc's activity ratios show the efficiency of the company's management of its assets and liabilities.

1. Days of Inventory on Hand (DOH): Air Products and Chemicals Inc's DOH has been relatively stable over the past few quarters, ranging from 19.40 days to 30.26 days. A lower DOH indicates faster inventory turnover, which can be positive for the company's working capital management.

2. Days of Sales Outstanding (DSO): The DSO for Air Products and Chemicals Inc has fluctuated between 50.70 days and 69.93 days. A lower DSO means faster collection of receivables, indicating efficient credit and collection management. Monitoring this ratio can help assess the company's liquidity and ability to generate cash flow.

3. Number of Days of Payables: Air Products and Chemicals Inc's payables information is missing for a number of quarters, but the available data indicates a range of 33.28 days to 57.35 days. A higher number of days of payables suggests that the company takes longer to pay its suppliers, potentially benefiting from extended credit terms and improving cash flow.

Overall, analyzing these activity ratios can provide insights into Air Products and Chemicals Inc's operational efficiency, inventory management, collection practices, and payment terms with suppliers. Monitoring these ratios over time can help evaluate the company's performance and effectiveness in managing its working capital.

Long-term

	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
Fixed asset turnover	0.52	0.56	0.61	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
Total asset turnover	0.31	0.33	0.34	0.36	0.39	0.42	0.45	0.46	0.47	0.44	0.41	0.40	0.38	0.37	0.35	0.34	0.35	0.36	0.46	0.46

Air Products and Chemicals Inc has shown a declining trend in its fixed asset turnover ratio over the past few quarters, indicating that the company is generating less revenue from its fixed assets. This may suggest that the company's fixed assets are not being utilized as efficiently as before.

The total asset turnover ratio has also been decreasing over the same period, which suggests that the company is generating less revenue for each dollar of its total assets. This could be a concerning sign as it indicates a decrease in the company's overall efficiency in generating sales from its total assets.

Overall, the declining trend in both fixed asset turnover and total asset turnover ratios may require further investigation to understand the reasons behind the drop in efficiency and revenue generation. Further analysis of the company's asset management practices and operational efficiency may be needed to improve these ratios and enhance the company's financial performance.