Liquidity ratios measure the company ability to meet its short-term obligations.
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Liquidity Ratios (Summary)
Based on: 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-K (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-K (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-K (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-K (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-Q (reporting date: 2016-12-31), 10-K (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-Q (reporting date: 2015-12-31), 10-K (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-Q (reporting date: 2014-12-31).
The liquidity ratios of the company demonstrate notable fluctuations over the examined periods, reflecting changes in short-term financial health and asset liquidity management.
- Current Ratio
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The current ratio exhibits an initial decline from 1.05 at the end of 2014 to a low of 0.78 in December 2015, indicating a potential decrease in the company’s ability to cover short-term liabilities with current assets during that period. Following this trough, a steady improvement is observed through 2016, reaching 1.31 by September 2016. From early 2017 onwards, a significant and sustained increase occurs, with the ratio rising above 2.0 consistently and peaking around 3.59 in the third quarter of 2020. A slight moderation is noted thereafter, stabilizing near 3.0 by mid-2021. Overall, the trend suggests strengthening liquidity and enhanced short-term solvency over time, especially post-2016.
- Quick Ratio
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The quick ratio follows a parallel pattern to the current ratio, starting at 0.56 at the end of 2014 and declining to 0.44 by late 2015, indicating a reduction in immediately liquid assets against current liabilities. A recovery begins in mid-2016, with a substantial jump in early 2017 reaching values above 1.7, reflecting improved availability of liquid assets excluding inventory. This upward trend continues into 2020, where the ratio exceeds 3.0 at one point, signaling strong liquidity reserves. The ratio slightly declines but remains elevated around the mid-2.0 range by mid-2021. These movements imply strategic management of liquid assets enhancing solvency and financial flexibility.
- Cash Ratio
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The cash ratio shows the most pronounced variability, commencing at low levels near 0.08 in late 2014, with slight fluctuations through 2015 and early 2016. A marked increase occurs beginning in mid-2016, with a sharp rise in early 2017 that pushes the ratio above 1.2 and subsequently reaching peaks over 2.5 around late 2020 and early 2021. This indicates a substantial accumulation of cash and cash equivalents relative to current liabilities. Post-peak values slightly taper but hold above 2.0 by mid-2021, suggesting robust liquidity buffers and conservative cash management practices.
In summary, all three liquidity ratios reveal an overarching improvement in the company's liquidity position from 2016 onwards, reflecting enhanced capability to meet short-term obligations through greater reliance on liquid assets. The substantial increases in the quick and cash ratios particularly highlight a strategic emphasis on strengthening immediate asset liquidity, which could mitigate risk during periods of financial uncertainty. The initial declines observed through 2015 may suggest either operational challenges or intentional financial repositioning prior to the subsequent stabilization and growth phase.
Current Ratio
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 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | |||||||||
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Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||||||||
Current assets | |||||||||||||||||||||||||||||||||||
Current liabilities | |||||||||||||||||||||||||||||||||||
Liquidity Ratio | |||||||||||||||||||||||||||||||||||
Current ratio1 | |||||||||||||||||||||||||||||||||||
Benchmarks | |||||||||||||||||||||||||||||||||||
Current Ratio, Competitors2 | |||||||||||||||||||||||||||||||||||
Linde plc | |||||||||||||||||||||||||||||||||||
Sherwin-Williams Co. |
Based on: 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-K (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-K (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-K (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-K (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-Q (reporting date: 2016-12-31), 10-K (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-Q (reporting date: 2015-12-31), 10-K (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-Q (reporting date: 2014-12-31).
1 Q3 2021 Calculation
Current ratio = Current assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends and shifts over the observed periods with respect to current assets, current liabilities, and the current ratio.
- Current Assets
- Current assets showed a varying trend, starting at approximately 3.14 billion USD at the end of 2014 and decreasing gradually to about 2.78 billion USD at the end of 2015. This was followed by a significant increase through 2016, peaking around 5.29 billion USD by the end of March 2017. After this peak, current assets experienced some fluctuations but generally remained around 5 billion USD up to early 2019. Thereafter, there was a notable surge in June 2020, where current assets jumped to around 9 billion USD and sustained levels close to this mark through mid-2021, indicating substantial growth in liquidity or asset holdings in the more recent periods.
- Current Liabilities
- Current liabilities initially fluctuated between approximately 3 billion and 3.8 billion USD from late 2014 through early 2016, followed by a steady decrease over the next couple of years, reaching a low near 1.8 billion USD by early 2020. However, in mid-2020, there was a marked increase in current liabilities, rising sharply to over 2.5 billion USD by September 2020 and remaining elevated around this range through mid-2021. This pattern suggests a recent increase in short-term obligations that corresponds with changes in current assets during the same period.
- Current Ratio
- The current ratio showed considerable variability over the periods analyzed. Initially close to parity (slightly above 1) from late 2014 until the end of 2015, the ratio dropped below 1 in late 2015, reflecting reduced liquidity relative to liabilities during that time. Starting in 2016, the ratio improved significantly, generally remaining well above 2 from early 2017 onward, indicating stronger short-term financial stability and a comfortable liquidity position. Notably, there was a sharp increase towards 3.5 in the last quarters of 2020, coinciding with the aforementioned changes in assets and liabilities, and remained elevated through mid-2021. This increased ratio suggests enhanced capacity to cover current liabilities with current assets in the latter periods.
Quick Ratio
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 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | |||||||||
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Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||||||||
Cash and cash items | |||||||||||||||||||||||||||||||||||
Short-term investments | |||||||||||||||||||||||||||||||||||
Trade receivables, net | |||||||||||||||||||||||||||||||||||
Total quick assets | |||||||||||||||||||||||||||||||||||
Current liabilities | |||||||||||||||||||||||||||||||||||
Liquidity Ratio | |||||||||||||||||||||||||||||||||||
Quick ratio1 | |||||||||||||||||||||||||||||||||||
Benchmarks | |||||||||||||||||||||||||||||||||||
Quick Ratio, Competitors2 | |||||||||||||||||||||||||||||||||||
Linde plc | |||||||||||||||||||||||||||||||||||
Sherwin-Williams Co. |
Based on: 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-K (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-K (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-K (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-K (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-Q (reporting date: 2016-12-31), 10-K (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-Q (reporting date: 2015-12-31), 10-K (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-Q (reporting date: 2014-12-31).
1 Q3 2021 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
The quick ratio demonstrates significant variability over the analyzed periods, indicating fluctuations in the company's short-term liquidity position. Initially, the ratio hovers around 0.44 to 0.57 from December 2014 through June 2016, reflecting a modest ability to cover current liabilities with quick assets.
Starting from September 2016, there is a noticeable increase in the quick ratio, rising sharply to 0.9 and then surging to peaks above 1.7 during 2017. This upward trend continues, reaching a high of approximately 3.16 in March 2021. Such an increase suggests a substantial strengthening of liquid asset holdings relative to short-term obligations during this period.
Examining the components, total quick assets show a substantial rise beginning in early 2017, climbing from values around 4.2 million US$ to over 7.6 million US$ by mid-2021. This growth in liquid assets primarily drives the improvement in the quick ratio.
Conversely, current liabilities exhibit a contrasting pattern. From a level near 3.0 million US$ in late 2014, current liabilities generally decline through 2017, reaching a low near 1.8 million US$ in early 2020. However, post-2020, current liabilities increase again, approaching nearly 3.0 million US$ by mid-2021. Despite this increase, the quick ratio remains elevated due to the substantially higher quick asset base.
Overall, the trend indicates an increasingly conservative liquidity management approach, with a growing buffer of liquid assets available short-term liabilities. This shift enhances the company's capacity to meet short-term obligations promptly, potentially reflecting a strategic emphasis on financial stability or changes in operational cash flow dynamics.
Cash Ratio
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 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | |||||||||
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Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||||||||
Cash and cash items | |||||||||||||||||||||||||||||||||||
Short-term investments | |||||||||||||||||||||||||||||||||||
Total cash assets | |||||||||||||||||||||||||||||||||||
Current liabilities | |||||||||||||||||||||||||||||||||||
Liquidity Ratio | |||||||||||||||||||||||||||||||||||
Cash ratio1 | |||||||||||||||||||||||||||||||||||
Benchmarks | |||||||||||||||||||||||||||||||||||
Cash Ratio, Competitors2 | |||||||||||||||||||||||||||||||||||
Linde plc | |||||||||||||||||||||||||||||||||||
Sherwin-Williams Co. |
Based on: 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-K (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-K (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-K (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-K (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-Q (reporting date: 2016-12-31), 10-K (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-Q (reporting date: 2015-12-31), 10-K (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-Q (reporting date: 2014-12-31).
1 Q3 2021 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
The data reveals notable fluctuations in total cash assets, current liabilities, and the resulting cash ratio over the analyzed periods. These financial metrics provide insight into the liquidity position and short-term financial health.
- Total Cash Assets
- The total cash assets demonstrated considerable variation across the quarters. Initially, there was a moderate value of approximately 239 million US dollars at the end of 2014, followed by some oscillations with a significant peak occurring in the first quarter of 2017, reaching over 3.3 billion US dollars. Subsequent periods saw declines and rises, with another peak near 6.4 billion US dollars in the second quarter of 2020, maintaining high levels through mid-2021 before a slight decline. Overall, the trend suggests periods of both accumulation and utilization of cash assets, with an increasing trend in the long term up to mid-2021.
- Current Liabilities
- The current liabilities showed a general downward trend from the start of the period through early 2020, decreasing from approximately 3 billion US dollars to about 1.8 billion US dollars. However, this was followed by an increase starting in the second quarter of 2020, peaking at around 3 billion US dollars by mid-2021. This fluctuation may reflect different operating cycles or financing activities during these periods.
- Cash Ratio
- The cash ratio reflects a trend consistent with the changes in total cash assets relative to current liabilities. Beginning with low values around 0.06 to 0.08, indicating limited cash coverage of current liabilities, the ratio increased markedly, reaching values above 1 from late 2016 onward. Notably, the cash ratio peaked significantly in the second and third quarters of 2020, surpassing 2.4, suggesting a strong liquidity position during this time. Although there was a slight decrease toward mid-2021, the ratio remained above 2, indicating sustained robust cash coverage of short-term obligations.
In summary, the company exhibited increasing liquidity over the period analyzed, with substantial growth in cash reserves relative to current liabilities, particularly after 2016. The elevated cash ratios in 2020 and 2021 suggest strategic accumulation of cash or a reduction in short-term liabilities, possibly reflecting a conservative financial approach or response to external economic conditions.