Air Products and Chemicals Inc (APD)

Liquidity ratios

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
Current ratio 1.81 1.33 1.36 2.04 1.93 1.81 1.87 1.95 2.47 2.99 3.11 2.91 2.95 3.59 3.48 2.59 2.59 2.54 2.28 2.36
Quick ratio 1.27 1.00 0.97 1.57 1.55 1.49 1.51 1.59 2.09 2.62 2.73 2.55 2.59 3.20 3.14 2.12 2.03 2.02 1.87 1.93
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

Air Products & Chemicals Inc.'s liquidity ratios have shown some fluctuations over the past few quarters. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has generally been healthy, ranging from 1.33 to 2.04. The current ratio improved significantly in Q2 2023 and Q1 2024, indicating a stronger liquidity position during those periods.

The quick ratio, a more conservative measure of liquidity that excludes inventory from current assets, has also depicted a similar trend. Although slightly lower than the current ratio, the quick ratio has consistently been above 1, suggesting that Air Products & Chemicals Inc. has an adequate level of liquid assets to cover its short-term obligations without relying on inventory.

The cash ratio, which focuses solely on the most liquid assets like cash and equivalents, has shown more variability compared to the other ratios. Despite this, the company maintained a cash ratio above 1 in most quarters, indicating that it has sufficient cash on hand to meet its immediate liabilities.

Overall, based on the liquidity ratios analysis, Air Products & Chemicals Inc. appears to have a solid liquidity position, with the ability to meet its short-term obligations comfortably. It is essential for investors and stakeholders to continue monitoring these ratios to ensure the company's financial health and liquidity sustainability.

See also:

Air Products and Chemicals Inc Liquidity Ratios (Quarterly Data)

Additional liquidity measure

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 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

The cash conversion cycle for Air Products & Chemicals Inc. has shown fluctuations over the past eight quarters. In Q1 2024, the company had a cash conversion cycle of 80.70 days, indicating that it takes approximately 80.70 days for the company to convert its investments in inventory and other resources into cash from sales. This represents a significant increase from the previous quarter where the cash conversion cycle was 28.33 days.

The Q4 2023 cash conversion cycle of 28.33 days was notably lower compared to the cycles in Q3 and Q2 of the same year, which were 80.60 days and 72.41 days, respectively. However, it was still higher than the cycle in Q1 2023, which was 76.49 days.

Looking further back, the company had a relatively low cash conversion cycle in Q4 2022 of 30.11 days, which improved from the cycles in Q3 and Q2 2022, which were 75.44 days and 78.04 days, respectively.

Overall, Air Products & Chemicals Inc.'s cash conversion cycle has exhibited variability, with periods of shorter cycles interspersed with longer cycles. This could indicate fluctuations in the company's efficiency in managing its working capital, inventory, and accounts receivable. Further analysis and comparison with industry benchmarks could provide additional insights into the company's cash conversion efficiency.