Current Ratio
since 2005
Calculation
Air Products & Chemicals Inc., current ratio, long-term trends, calculation
| Current ratio | = | Current assets1 | ÷ | Current liabilities1 | |
|---|---|---|---|---|---|
| Sep 30, 2020 | 3.59 | = | 8,684,900) | ÷ | 2,416,700) |
| Sep 30, 2019 | 2.54 | = | 4,618,300) | ÷ | 1,820,900) |
| Sep 30, 2018 | 2.17 | = | 5,082,200) | ÷ | 2,338,300) |
| Sep 30, 2017 | 2.36 | = | 5,876,700) | ÷ | 2,489,000) |
| Sep 30, 2016 | 1.31 | = | 4,317,300) | ÷ | 3,283,300) |
| Sep 30, 2015 | 0.80 | = | 2,910,800) | ÷ | 3,648,100) |
| Sep 30, 2014 | 1.11 | = | 3,294,800) | ÷ | 2,963,000) |
| Sep 30, 2013 | 1.07 | = | 3,439,100) | ÷ | 3,227,600) |
| Sep 30, 2012 | 1.27 | = | 3,415,800) | ÷ | 2,689,900) |
| Sep 30, 2011 | 1.36 | = | 3,189,800) | ÷ | 2,342,000) |
| Sep 30, 2010 | 1.35 | = | 3,033,800) | ÷ | 2,244,100) |
| Sep 30, 2009 | 1.20 | = | 2,997,800) | ÷ | 2,503,600) |
| Sep 30, 2008 | 1.29 | = | 2,848,100) | ÷ | 2,212,000) |
| Sep 30, 2007 | 1.18 | = | 2,858,400) | ÷ | 2,422,700) |
| Sep 30, 2006 | 1.12 | = | 2,612,600) | ÷ | 2,323,400) |
| Sep 30, 2005 | 1.24 | = | 2,414,700) | ÷ | 1,943,200) |
Based on: 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30), 10-K (reporting date: 2014-09-30), 10-K (reporting date: 2013-09-30), 10-K (reporting date: 2012-09-30), 10-K (reporting date: 2011-09-30), 10-K (reporting date: 2010-09-30), 10-K (reporting date: 2009-09-30), 10-K (reporting date: 2008-09-30), 10-K (reporting date: 2007-09-30), 10-K (reporting date: 2006-09-30), 10-K (reporting date: 2005-09-30).
1 US$ in thousands
The liquidity position of the organization from 2005 to 2020 is characterized by an initial period of stability, a temporary contraction in 2015, and a subsequent period of significant expansion in liquidity reserves.
- Stability Phase (2005–2014)
- During this ten-year interval, the current ratio remained relatively consistent, generally fluctuating between 1.07 and 1.36. Current assets grew modestly from 2.41 billion USD in 2005 to 3.29 billion USD in 2014, while current liabilities were maintained within a similar range, typically between 1.94 billion USD and 3.23 billion USD. This indicates a disciplined approach to short-term working capital management.
- Liquidity Contraction (2015)
- A notable decline in the current ratio occurred in 2015, where the value dropped to 0.80. This represents the only period in the analyzed timeframe where current liabilities (3.65 billion USD) exceeded current assets (2.91 billion USD), signaling a temporary reduction in the ability to cover short-term obligations with short-term assets.
- Aggressive Liquidity Expansion (2016–2020)
- Following the 2015 low, a strong upward trend in the current ratio is observed, peaking at 3.59 in 2020. This shift was driven primarily by a substantial increase in current assets, which rose from 4.32 billion USD in 2016 to 8.68 billion USD by 2020. Simultaneously, current liabilities were reduced and stabilized, falling from a 2015 peak of 3.65 billion USD to 2.42 billion USD in 2020. This divergence between rising assets and controlled liabilities resulted in a significantly strengthened short-term financial position.
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Comparison to Competitors
Air Products & Chemicals Inc., current ratio, long-term trends, comparison to competitors
| Air Products & Chemicals Inc. | Linde plc | Sherwin-Williams Co. | |
|---|---|---|---|
| Sep 30, 2020 | 3.59 | 0.80 | 1.00 |
| Sep 30, 2019 | 2.54 | 0.85 | 1.02 |
| Sep 30, 2018 | 2.17 | 1.33 | 1.01 |
| Sep 30, 2017 | 2.36 | 0.99 | 1.12 |
| Sep 30, 2016 | 1.31 | 1.16 | 1.28 |
| Sep 30, 2015 | 0.80 | 1.39 | 1.24 |
| Sep 30, 2014 | 1.11 | 1.14 | 0.96 |
| Sep 30, 2013 | 1.07 | 1.09 | 1.25 |
| Sep 30, 2012 | 1.27 | 1.13 | 1.68 |
| Sep 30, 2011 | 1.36 | 1.03 | 1.05 |
| Sep 30, 2010 | 1.35 | 1.13 | 1.07 |
| Sep 30, 2009 | 1.20 | 1.23 | 1.27 |
| Sep 30, 2008 | 1.29 | 0.77 | 0.99 |
| Sep 30, 2007 | 1.18 | 0.91 | 0.97 |
| Sep 30, 2006 | 1.12 | 1.17 | 1.18 |
| Sep 30, 2005 | 1.24 | 1.07 | 1.22 |
Based on: 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30), 10-K (reporting date: 2014-09-30), 10-K (reporting date: 2013-09-30), 10-K (reporting date: 2012-09-30), 10-K (reporting date: 2011-09-30), 10-K (reporting date: 2010-09-30), 10-K (reporting date: 2009-09-30), 10-K (reporting date: 2008-09-30), 10-K (reporting date: 2007-09-30), 10-K (reporting date: 2006-09-30), 10-K (reporting date: 2005-09-30).
Comparison to Sector (Chemicals)
Air Products & Chemicals Inc., current ratio, long-term trends, comparison to sector (chemicals)
| Air Products & Chemicals Inc. | Chemicals | |
|---|---|---|
| Sep 30, 2020 | 3.59 | 0.85 |
| Sep 30, 2019 | 2.54 | 0.90 |
| Sep 30, 2018 | 2.17 | 1.25 |
| Sep 30, 2017 | 2.36 | 1.06 |
| Sep 30, 2016 | 1.31 | 1.23 |
| Sep 30, 2015 | 0.80 | 1.31 |
| Sep 30, 2014 | 1.11 | 1.05 |
| Sep 30, 2013 | 1.07 | 1.17 |
| Sep 30, 2012 | 1.27 | 1.36 |
| Sep 30, 2011 | 1.36 | 1.04 |
| Sep 30, 2010 | 1.35 | 1.10 |
| Sep 30, 2009 | 1.20 | 1.25 |
| Sep 30, 2008 | 1.29 | 0.86 |
| Sep 30, 2007 | 1.18 | 0.93 |
| Sep 30, 2006 | 1.12 | 1.18 |
| Sep 30, 2005 | 1.24 | 1.13 |
Based on: 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30), 10-K (reporting date: 2014-09-30), 10-K (reporting date: 2013-09-30), 10-K (reporting date: 2012-09-30), 10-K (reporting date: 2011-09-30), 10-K (reporting date: 2010-09-30), 10-K (reporting date: 2009-09-30), 10-K (reporting date: 2008-09-30), 10-K (reporting date: 2007-09-30), 10-K (reporting date: 2006-09-30), 10-K (reporting date: 2005-09-30).
Comparison to Industry (Materials)
Air Products & Chemicals Inc., current ratio, long-term trends, comparison to industry (materials)
| Air Products & Chemicals Inc. | Materials | |
|---|---|---|
| Sep 30, 2020 | 3.59 | 1.14 |
| Sep 30, 2019 | 2.54 | 1.15 |
| Sep 30, 2018 | 2.17 | 1.57 |
| Sep 30, 2017 | 2.36 | 1.50 |
| Sep 30, 2016 | 1.31 | 1.77 |
| Sep 30, 2015 | 0.80 | 1.53 |
| Sep 30, 2014 | 1.11 | 1.40 |
| Sep 30, 2013 | 1.07 | 1.61 |
| Sep 30, 2012 | 1.27 | 2.11 |
| Sep 30, 2011 | 1.36 | 1.95 |
| Sep 30, 2010 | 1.35 | 1.82 |
| Sep 30, 2009 | 1.20 | 1.84 |
| Sep 30, 2008 | 1.29 | 1.17 |
| Sep 30, 2007 | 1.18 | 1.20 |
| Sep 30, 2006 | 1.12 | 1.39 |
| Sep 30, 2005 | 1.24 | 1.23 |
Based on: 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30), 10-K (reporting date: 2014-09-30), 10-K (reporting date: 2013-09-30), 10-K (reporting date: 2012-09-30), 10-K (reporting date: 2011-09-30), 10-K (reporting date: 2010-09-30), 10-K (reporting date: 2009-09-30), 10-K (reporting date: 2008-09-30), 10-K (reporting date: 2007-09-30), 10-K (reporting date: 2006-09-30), 10-K (reporting date: 2005-09-30).