Air Products and Chemicals Inc (APD)
Current ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 5,200,500 | 6,282,900 | 8,376,300 | 8,684,900 | 4,618,300 |
| Total current liabilities | US$ in thousands | 3,895,800 | 3,465,800 | 2,799,100 | 2,416,700 | 1,820,900 |
| Current ratio | 1.33 | 1.81 | 2.99 | 3.59 | 2.54 |
September 30, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $5,200,500K ÷ $3,895,800K
= 1.33
The current ratio of Air Products & Chemicals Inc. has shown a decreasing trend over the past five years, declining from 3.59 in 2020 to 1.33 in 2023. This indicates a decreasing ability to cover short-term obligations with current assets. A current ratio above 1 typically suggests that the company is able to meet its short-term obligations, but the declining trend may raise concerns about liquidity management and the ability to cover immediate liabilities. It would be advisable for stakeholders to further investigate the reasons behind this decreasing trend and assess the company's ability to manage its short-term liquidity effectively.
Peer comparison
Sep 30, 2023