Air Products and Chemicals Inc (APD)
Current ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 6,363,000 | 5,200,500 | 6,282,900 | 8,376,300 | 8,684,900 |
| Total current liabilities | US$ in thousands | 4,179,600 | 3,895,800 | 3,465,800 | 2,799,100 | 2,416,700 |
| Current ratio | 1.52 | 1.33 | 1.81 | 2.99 | 3.59 |
September 30, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $6,363,000K ÷ $4,179,600K
= 1.52
The current ratio of Air Products and Chemicals Inc has shown a decreasing trend over the past five years, dropping from 3.59 in 2020 to 1.52 in 2024. A current ratio above 1 indicates that the company has more current assets than current liabilities to meet its short-term obligations.
A declining current ratio could suggest potential liquidity challenges, as the company may be less able to cover its short-term liabilities with its current assets. However, it is important to note that the current ratio of 1.52 in 2024 still indicates that the company has sufficient current assets to cover its current liabilities.
Further analysis is recommended to understand the reasons behind the decreasing trend in the current ratio and to assess the overall liquidity position of Air Products and Chemicals Inc. It may be useful to compare the current ratio with industry benchmarks and conduct a detailed review of the company's current assets and liabilities composition.
Peer comparison
Sep 30, 2024