Air Products and Chemicals Inc (APD)

Quick ratio

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Cash	US$ in thousands	2,979,700	1,617,000	2,711,000	4,468,900	5,253,000
Short-term investments	US$ in thousands	5,000	332,200	590,700	1,331,900	1,104,900
Receivables	US$ in thousands	2,017,500	1,960,000	1,849,400	1,541,300	1,369,800
Total current liabilities	US$ in thousands	4,179,600	3,895,800	3,465,800	2,799,100	2,416,700
Quick ratio		1.20	1.00	1.49	2.62	3.20

September 30, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($2,979,700K + $5,000K + $2,017,500K) ÷ $4,179,600K
= 1.20

The quick ratio of Air Products and Chemicals Inc has shown a declining trend over the past five years. The quick ratio indicates the company's ability to meet its short-term obligations using its most liquid assets.

In 2020, the quick ratio was at a robust 3.20, suggesting that the company had more than enough liquid assets to cover its short-term liabilities. However, the quick ratio has since decreased steadily, dropping to 2.62 in 2021, 1.49 in 2022, 1.00 in 2023, and lastly, 1.20 in 2024.

Although the quick ratio in 2024 improved slightly compared to the previous year, it remains below the levels seen in 2020 and 2021. This indicates a potential weakening of the company's liquidity position over the years, as the quick ratio is now closer to the acceptable threshold of 1.0.

Overall, the declining trend in Air Products and Chemicals Inc's quick ratio suggests that the company may be facing challenges in maintaining its short-term liquidity position. Investors and creditors may monitor this ratio closely to assess the company's ability to meet its immediate financial obligations.