Air Products and Chemicals Inc (APD)
Working capital turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 12,422,700 | 12,600,000 | 12,978,700 | 13,134,100 | 12,879,100 | 12,698,600 | 11,969,700 | 11,385,100 | 10,942,000 | 10,323,000 | 9,802,000 | 9,262,500 | 8,976,800 | 8,856,300 | 8,819,400 | 8,978,200 | 8,949,600 | 8,918,900 | 8,934,600 | 8,969,600 |
| Total current assets | US$ in thousands | 5,649,500 | 5,200,500 | 5,354,000 | 5,721,600 | 6,321,100 | 6,282,900 | 6,367,300 | 6,249,400 | 6,483,500 | 8,376,300 | 8,376,800 | 8,766,600 | 8,809,800 | 8,684,900 | 9,006,500 | 4,688,500 | 4,719,700 | 4,618,300 | 4,915,200 | 4,895,200 |
| Total current liabilities | US$ in thousands | 3,119,200 | 3,895,800 | 3,947,700 | 2,797,900 | 3,276,900 | 3,465,800 | 3,406,900 | 3,205,100 | 2,630,100 | 2,799,100 | 2,697,100 | 3,017,400 | 2,985,900 | 2,416,700 | 2,591,000 | 1,806,900 | 1,819,000 | 1,820,900 | 2,155,200 | 2,073,000 |
| 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 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $12,422,700K ÷ ($5,649,500K – $3,119,200K)
= 4.91
The working capital turnover of Air Products & Chemicals Inc. has fluctuated over the past eight quarters. In Q4 2023, the working capital turnover was at its highest at 9.66, indicating that the company generated $9.66 in net sales revenue for every dollar of working capital invested during that quarter. Similarly, in Q3 2023, the working capital turnover was strong at 9.23.
However, there was a notable decline in Q2 2023, where the working capital turnover dropped to 4.49, indicating a decrease in efficiency in utilizing working capital to generate sales revenue compared to the previous quarters. The trend continued into Q1 2023 with a working capital turnover of 4.23, which was below the levels seen in Q4 2022.
Looking further back, there was a visible improvement in working capital turnover in Q4 2022 compared to the preceding quarters. The values ranged from 4.51 in Q4 2022 to 3.74 in Q2 2022, showing some fluctuation in the company's efficiency in managing working capital during that period.
Overall, Air Products & Chemicals Inc.'s working capital turnover has shown variability over the last eight quarters, with some peaks and troughs. It is essential for the company to maintain a balance in managing its working capital effectively to ensure optimal utilization and efficiency in generating sales revenue.
Peer comparison
Dec 31, 2023
See also:
Air Products and Chemicals Inc Working Capital Turnover (Quarterly Data)