Air Products and Chemicals Inc (APD)

Total asset 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
Total assets	US$ in thousands	39,574,600	32,002,500	27,192,600	26,859,200	25,168,500
Total asset turnover		0.31	0.39	0.47	0.38	0.35

September 30, 2024 calculation

Total asset turnover = Revenue ÷ Total assets
= $12,100,600K ÷ $39,574,600K
= 0.31

Total asset turnover measures how efficiently a company is utilizing its assets to generate revenue. In the case of Air Products and Chemicals Inc, we observe fluctuations in the total asset turnover ratio over the past five years:

1. In 2024, the total asset turnover ratio was 0.31, indicating that for every dollar of assets, the company generated $0.31 of revenue. This suggests a decline in asset efficiency compared to the previous year.

2. The ratio was at its highest in 2022 at 0.47, reflecting improved asset utilization and revenue generation. This could be attributed to effective asset management strategies during that period.

3. In 2021, the ratio decreased to 0.38, indicating a slight decrease in asset efficiency compared to the previous year but still relatively strong asset utilization.

4. The total asset turnover ratio was at 0.35 in 2020, showing a moderate increase in asset efficiency compared to the previous year.

Overall, the trend in total asset turnover for Air Products and Chemicals Inc shows variability, suggesting fluctuations in the company's ability to efficiently generate revenue from its total assets. Further analysis of the company's operational effectiveness and asset management practices may be needed to understand the factors influencing these fluctuations in asset turnover ratios.