Air Products and Chemicals Inc (APD)

Activity ratios

Short-term

Turnover ratios

	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
Inventory turnover	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	15.46	14.89	15.08
Receivables turnover	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	7.08	6.66	7.13
Payables turnover	—	8.33	—	—	—	6.66	—	—	—	10.97	—	—	—	10.73	—	—	—	11.56	—	—
Working capital turnover	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	3.19	3.24	3.18

Based on the activity ratios provided for Air Products & Chemicals Inc., we can assess the efficiency of the company in managing its inventory, receivables, payables, and working capital.

1. Inventory Turnover:
- The inventory turnover ratio has been relatively stable over the quarters, ranging from 12.16 to 18.16. This indicates that the company is efficiently managing its inventory by selling and restocking goods at a steady pace.
- A higher inventory turnover ratio suggests that the company is effectively converting its inventory into sales, which is generally positive for cash flow and profitability.

2. Receivables Turnover:
- The receivables turnover ratio has also shown consistency, with values fluctuating between 6.71 and 7.66. This indicates that the company is collecting its accounts receivable in a timely manner.
- A higher receivables turnover ratio suggests that the company has efficient credit and collection policies in place, which can help maintain a healthy cash flow.

3. Payables Turnover:
- Payables turnover data is missing for several quarters, except for Q4 2022 and Q2 2022. The payables turnover ratio in Q4 2022 was 8.33.
- The payables turnover ratio helps to assess how quickly the company is paying its suppliers. A higher ratio may indicate that the company is taking longer to pay its bills, which could affect relationships with suppliers.

4. Working Capital Turnover:
- The working capital turnover ratio has varied significantly over the quarters, ranging from 3.74 to 9.66. A higher working capital turnover ratio suggests that the company is generating more revenue per dollar of working capital.
- Fluctuations in this ratio could indicate changes in the company's sales efficiency and working capital management practices.

In conclusion, Air Products & Chemicals Inc. demonstrates strong efficiency in managing its inventory and receivables based on the turnover ratios provided. However, the limited data on payables turnover and the varying working capital turnover ratios suggest some fluctuations in the company's ability to efficiently utilize its resources and manage its working capital effectively.

Average number of days

		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
Days of inventory on hand (DOH)	days	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	23.60	24.51	24.20
Days of sales outstanding (DSO)	days	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	51.57	54.77	51.21
Number of days of payables	days	—	43.82	—	—	—	54.78	—	—	—	33.28	—	—	—	34.03	—	—	—	31.57	—	—

Days of Inventory on Hand (DOH) measures how efficiently Air Products & Chemicals Inc. manages its inventory. The trend shows an increase in inventory holding period from Q2 2022 to Q1 2024, indicating that inventory turnover has slowed down. This could tie up more capital in inventory, potentially impacting cash flow and increasing the risk of obsolescence or storage costs.

Days of Sales Outstanding (DSO) represents the average number of days it takes for the company to collect revenue after a sale is made. The trend fluctuates but remains relatively stable, with a slight increase from Q2 2022 to Q1 2024. This indicates consistent collection practices or credit policies, but a higher DSO could imply a need for improved collection efforts to enhance cash flow.

Number of Days of Payables provides insights into how long Air Products & Chemicals takes to pay its suppliers. The data is sparse, but the available figures suggest a decrease in the payables period from Q4 2022 to Q4 2023. This might indicate quicker payment to suppliers, which could strain liquidity if not managed efficiently.

Overall, the analysis of activity ratios for Air Products & Chemicals Inc. reveals areas where the company may need to optimize its working capital management to enhance operational efficiency and financial performance.

Long-term

	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
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
Total asset turnover	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	0.47	0.46	0.47

Air Products & Chemicals Inc.'s long-term activity ratios, specifically the fixed asset turnover and total asset turnover, indicate how efficiently the company is utilizing its assets to generate revenue.

The fixed asset turnover ratio has been declining over the past few quarters, from 0.90 in Q4 2022 to 0.66 in Q1 2024. This suggests that Air Products & Chemicals Inc. is generating less revenue per dollar invested in fixed assets. A lower fixed asset turnover ratio could indicate underutilization of fixed assets, inefficient asset management, or a decline in the company's operational efficiency.

Similarly, the total asset turnover ratio has also been decreasing from 0.47 in Q4 2022 to 0.36 in Q1 2024. This indicates that the company is generating less revenue per dollar of total assets. A declining total asset turnover ratio may imply that Air Products & Chemicals Inc. is struggling to efficiently utilize its total assets to generate sales.

Overall, the trend of decreasing fixed asset turnover and total asset turnover ratios for Air Products & Chemicals Inc. raises concerns about the company's operational efficiency and asset utilization. It indicates the need for the company to potentially reevaluate its asset management strategies and operational processes to improve efficiency and profitability.