Air Products and Chemicals Inc (APD)
Cash conversion cycle
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 30.26 | 29.51 | 27.79 | 26.14 | 23.55 | 31.60 | 29.98 | 30.84 | 25.13 | 19.40 | 20.30 | 20.44 | 20.50 | 22.14 | 23.43 | 24.87 | 25.22 | 25.94 | 24.71 | 24.71 |
| Days of sales outstanding (DSO) | days | 60.86 | 51.63 | 51.53 | 50.70 | 56.78 | 54.40 | 52.38 | 54.90 | 53.16 | 56.07 | 61.34 | 60.84 | 54.50 | 57.32 | 59.07 | 61.99 | 56.45 | 69.93 | 65.23 | 52.55 |
| Number of days of payables | days | 57.35 | — | — | — | 43.82 | — | — | — | 54.78 | — | — | — | 33.28 | — | — | — | 34.03 | — | — | — |
| Cash conversion cycle | days | 33.77 | 81.14 | 79.32 | 76.84 | 36.51 | 86.00 | 82.36 | 85.75 | 23.51 | 75.47 | 81.64 | 81.27 | 41.72 | 79.46 | 82.50 | 86.86 | 47.64 | 95.87 | 89.94 | 77.26 |
September 30, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 30.26 + 60.86 – 57.35
= 33.77
The cash conversion cycle of Air Products and Chemicals Inc has shown fluctuations over the periods analyzed. The cash conversion cycle represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
From the data provided, we observe that the cash conversion cycle has ranged from a low of 23.51 days to a high of 95.87 days over the past few years. The higher the number of days in the cash conversion cycle, the longer the company is taking to convert its investments into cash.
It is noteworthy that there have been instances where the cash conversion cycle has improved, such as in September 2022 when it was at its lowest point of 23.51 days. Conversely, there have been periods, like June 2020, where the cycle extended to 95.87 days.
Overall, the trend in the cash conversion cycle for Air Products and Chemicals Inc indicates that the company's efficiency in managing its working capital and converting investments into cash has varied over the periods reviewed. Further analysis and examination of the company's operational and financial strategies are needed to determine the underlying reasons for these fluctuations in the cash conversion cycle.
Peer comparison
Sep 30, 2024
See also:
Air Products and Chemicals Inc Cash Conversion Cycle (Quarterly Data)