Air Products and Chemicals Inc (APD)

Working capital 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 current assets	US$ in thousands	6,363,000	5,200,500	6,282,900	8,376,300	8,684,900
Total current liabilities	US$ in thousands	4,179,600	3,895,800	3,465,800	2,799,100	2,416,700
Working capital turnover		5.54	9.66	4.51	1.85	1.41

September 30, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $12,100,600K ÷ ($6,363,000K – $4,179,600K)
= 5.54

The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales revenue. In the case of Air Products and Chemicals Inc, the working capital turnover has fluctuated over the past five years.

In 2024, the working capital turnover was 5.54, indicating that the company generated $5.54 in sales for every dollar of working capital invested. This represents a decrease from the previous year when the ratio was 9.66, suggesting a less efficient management of working capital in the most recent period.

Comparing the data further, we observe that the working capital turnover was 4.51 in 2022, significantly higher than the ratio in 2021 (1.85) and 2020 (1.41). This indicates an improvement in working capital efficiency during 2022, which then declined in the following year.

Overall, the trend in Air Products and Chemicals Inc's working capital turnover suggests varying levels of efficiency in utilizing working capital to support sales revenue generation over the past five years. It may be important for the company to further analyze the factors influencing these fluctuations to ensure optimal management of working capital resources.