Air Products and Chemicals Inc (APD)

Receivables turnover

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Revenue	US$ in thousands	12,100,600	12,600,000	12,698,600	10,323,000	8,856,300
Receivables	US$ in thousands	2,017,500	1,960,000	1,849,400	1,541,300	1,369,800
Receivables turnover		6.00	6.43	6.87	6.70	6.47

September 30, 2024 calculation

Receivables turnover = Revenue ÷ Receivables
= $12,100,600K ÷ $2,017,500K
= 6.00

Air Products and Chemicals Inc's receivables turnover has been relatively stable over the past five years, ranging from 6.00 to 6.87. This ratio indicates the company's efficiency in collecting outstanding receivables from its customers. A higher turnover ratio suggests that the company is collecting receivables quickly, which is generally a positive sign as it indicates strong liquidity and effective credit management.

The slight fluctuations in the receivables turnover ratio over the years may be attributed to changes in the company's credit policies, customer payment behavior, or sales volume. Overall, Air Products and Chemicals Inc has maintained a healthy receivables turnover ratio, reflecting effective management of its accounts receivable. An investor or analyst may consider this consistent performance as a positive indicator of the company's financial health and operational efficiency in managing its working capital.