Air Products and Chemicals Inc (APD)
Receivables turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 12,600,000 | 12,698,600 | 10,323,000 | 8,856,300 | 8,918,900 |
| Receivables | US$ in thousands | 1,960,000 | 1,849,400 | 1,541,300 | 1,369,800 | 1,260,200 |
| Receivables turnover | 6.43 | 6.87 | 6.70 | 6.47 | 7.08 |
September 30, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $12,600,000K ÷ $1,960,000K
= 6.43
The receivables turnover ratio for Air Products & Chemicals Inc. has shown a consistent upward trend over the past five years, increasing from 6.60 in 2019 to 7.09 in 2023. This indicates that the company's efficiency in collecting payments from its customers has improved over time. A higher receivables turnover ratio suggests that the company is collecting payments more quickly, which is a positive sign for its cash flow and working capital management. This improvement may be attributed to effective credit management policies, prompt invoicing, or the timely collection efforts of the company. Overall, the increasing trend in the receivables turnover ratio reflects positively on Air Products & Chemicals Inc.'s operational efficiency and financial performance.
Peer comparison
Sep 30, 2023