Air Products and Chemicals Inc (APD)

Quick ratio

		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	US$ in thousands	1,962,600	1,617,000	1,637,700	2,242,400	3,131,000	2,711,000	2,957,400	2,348,700	2,953,700	4,468,900	4,291,600	5,786,300	5,788,000	5,253,000	3,921,400	2,220,100	2,406,100	2,248,700	2,696,800	2,735,900
Short-term investments	US$ in thousands	271,800	332,200	268,700	271,300	19,600	590,700	357,600	848,900	728,600	1,331,900	1,524,900	409,200	412,000	1,104,900	2,515,700	0	0	166,000	0	2,600
Receivables	US$ in thousands	1,725,400	1,960,000	1,934,200	1,884,700	1,937,200	1,849,400	1,838,600	1,913,200	1,823,800	1,541,300	1,539,300	1,498,900	1,524,700	1,369,800	1,689,700	1,604,400	1,288,600	1,260,200	1,340,700	1,258,500
Total current liabilities	US$ in thousands	3,119,200	3,895,800	3,947,700	2,797,900	3,276,900	3,465,800	3,406,900	3,205,100	2,630,100	2,799,100	2,697,100	3,017,400	2,985,900	2,416,700	2,591,000	1,806,900	1,819,000	1,820,900	2,155,200	2,073,000
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

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,962,600K + $271,800K + $1,725,400K) ÷ $3,119,200K
= 1.27

The quick ratio of Air Products & Chemicals Inc. has shown fluctuations over the past several quarters. The quick ratio measures the company's ability to cover its short-term liabilities with its most liquid assets, excluding inventory.

In Q1 2024, the quick ratio stood at 1.58, indicating that the company had $1.58 in liquid assets available to cover each $1 of current liabilities. This represents a strong liquidity position for the company.

Comparing Q1 2024 to the prior quarters:
- The quick ratio increased significantly from the Q4 2023 level of 1.17, indicating an improvement in liquidity.
- However, it decreased from the Q2 2023 level of 1.81, showing a decline in liquidity from that quarter.

Overall, the company's quick ratio has generally been above 1 in recent quarters, indicating that Air Products & Chemicals Inc. has had sufficient liquid assets to cover its short-term obligations. However, it is essential to monitor these ratios consistently to ensure the company maintains a healthy liquidity position.