Air Products and Chemicals Inc (APD)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	1,962,600	1,617,000	1,637,700	2,242,400	3,131,000	2,711,000	2,957,400	2,348,700	2,953,700	4,468,900	4,291,600	5,786,300	5,788,000	5,253,000	3,921,400	2,220,100	2,406,100	2,248,700	2,696,800	2,735,900
Short-term investments	US$ in thousands	271,800	332,200	268,700	271,300	19,600	590,700	357,600	848,900	728,600	1,331,900	1,524,900	409,200	412,000	1,104,900	2,515,700	0	0	166,000	0	2,600
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
Cash ratio		0.72	0.50	0.48	0.90	0.96	0.95	0.97	1.00	1.40	2.07	2.16	2.05	2.08	2.63	2.48	1.23	1.32	1.33	1.25	1.32

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,962,600K + $271,800K) ÷ $3,119,200K
= 0.72

The cash ratio of Air Products & Chemicals Inc. has shown variability in recent quarters. In Q1 2024, the cash ratio increased to 1.03, indicating that the company had $1.03 in cash and cash equivalents for every dollar of current liabilities. This was higher than the previous quarter (Q4 2023) when the cash ratio was 0.71, suggesting a significant improvement in the company's liquidity position.

However, looking at the trend over the past eight quarters, the cash ratio has fluctuated between 0.70 and 1.25. Q2 2023 had the highest ratio of 1.20, indicating a strong liquidity position, while Q3 2023 and Q4 2022 had lower ratios of 0.70 and 1.12 respectively, reflecting lower levels of cash relative to current liabilities during those periods.

Overall, Air Products & Chemicals Inc. has generally maintained a healthy cash ratio above 1.0 in most quarters, indicating a sufficient level of cash reserves to cover its short-term obligations. However, management should continue to monitor and manage liquidity effectively to ensure the company's financial stability and ability to meet its obligations in the future.