Air Products and Chemicals Inc (APD)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 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 | 23.60 | 24.51 | 24.20 |
| Days of sales outstanding (DSO) | days | 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 | 51.57 | 54.77 | 51.21 |
| Number of days of payables | days | — | 43.82 | — | — | — | 54.78 | — | — | — | 33.28 | — | — | — | 34.03 | — | — | — | 31.57 | — | — |
| Cash conversion cycle | days | 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 | 43.61 | 79.28 | 75.41 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 26.14 + 50.70 – —
= 76.84
The cash conversion cycle of Air Products & Chemicals Inc. has exhibited fluctuations over the past eight quarters. In Q1 2024, the cash conversion cycle increased significantly to 80.70 days compared to the previous quarter, Q4 2023, where it was 28.33 days. This indicates a slower conversion of inventory and receivables into cash during Q1 2024.
The highest cash conversion cycle in the provided data was observed in Q3 2023, standing at 80.60 days, while the lowest was in Q4 2022 at 30.11 days. The company's cash conversion cycle seems to oscillate between shorter and longer cycles, showcasing variations in managing its working capital efficiency.
Overall, Air Products & Chemicals Inc. should focus on optimizing its cash conversion cycle by efficiently managing its inventory, accounts payable, and accounts receivable to ensure a smoother and quicker conversion of operating activities into cash.
Peer comparison
Dec 31, 2023
See also:
Air Products and Chemicals Inc Cash Conversion Cycle (Quarterly Data)