Air Products and Chemicals Inc (APD)

Quick ratio

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Cash	US$ in thousands	1,617,000	2,711,000	4,468,900	5,253,000	2,248,700
Short-term investments	US$ in thousands	332,200	590,700	1,331,900	1,104,900	166,000
Receivables	US$ in thousands	1,960,000	1,849,400	1,541,300	1,369,800	1,260,200
Total current liabilities	US$ in thousands	3,895,800	3,465,800	2,799,100	2,416,700	1,820,900
Quick ratio		1.00	1.49	2.62	3.20	2.02

September 30, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,617,000K + $332,200K + $1,960,000K) ÷ $3,895,800K
= 1.00

The quick ratio of Air Products & Chemicals Inc. has exhibited a declining trend over the past five years, falling from 3.43 in 2020 to 1.17 in 2023. This indicates a reduction in the company's ability to meet its short-term liabilities using its most liquid assets. A quick ratio above 1 suggests that the company has sufficient liquid assets to cover its current liabilities, but the declining trend raises concerns about the company's short-term financial health. Further investigation into the company's liquidity management and short-term asset utilization may be necessary to understand the factors driving this trend.