Stock Analysis on Net

Air Products & Chemicals Inc. (NYSE:APD)

This company has been moved to the archive! The financial data has not been updated since August 9, 2021.

Analysis of Short-term (Operating) Activity Ratios

Microsoft Excel

Short-term Activity Ratios (Summary)

Air Products & Chemicals Inc., short-term (operating) activity ratios

Microsoft Excel
Sep 30, 2020 Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015
Turnover Ratios
Inventory turnover 14.47 15.39 15.63 17.15 10.33 10.56
Receivables turnover 6.95 7.08 7.40 6.97 6.61 7.04
Payables turnover 10.73 11.31 6.69 8.72 9.47 10.87
Working capital turnover 1.41 3.19 3.25 2.42 9.21
Average No. Days
Average inventory processing period 25 24 23 21 35 35
Add: Average receivable collection period 53 52 49 52 55 52
Operating cycle 78 76 72 73 90 87
Less: Average payables payment period 34 32 55 42 39 34
Cash conversion cycle 44 44 17 31 51 53

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).

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Air Products & Chemicals Inc. inventory turnover ratio deteriorated from 2018 to 2019 and from 2019 to 2020.
Receivables turnover An activity ratio equal to revenue divided by receivables. Air Products & Chemicals Inc. receivables turnover ratio deteriorated from 2018 to 2019 and from 2019 to 2020.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Air Products & Chemicals Inc. payables turnover ratio increased from 2018 to 2019 but then slightly decreased from 2019 to 2020.
Working capital turnover An activity ratio calculated as revenue divided by working capital. Air Products & Chemicals Inc. working capital turnover ratio deteriorated from 2018 to 2019 and from 2019 to 2020.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. Air Products & Chemicals Inc. number of days of inventory outstanding deteriorated from 2018 to 2019 and from 2019 to 2020.
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. Air Products & Chemicals Inc. number of days of receivables outstanding deteriorated from 2018 to 2019 and from 2019 to 2020.
Operating cycle Equal to average inventory processing period plus average receivables collection period. Air Products & Chemicals Inc. operating cycle deteriorated from 2018 to 2019 and from 2019 to 2020.
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. Air Products & Chemicals Inc. number of days of payables outstanding decreased from 2018 to 2019 but then slightly increased from 2019 to 2020.
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period.

Inventory Turnover

Air Products & Chemicals Inc., inventory turnover calculation, comparison to benchmarks

Microsoft Excel
Sep 30, 2020 Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015
Selected Financial Data (US$ in thousands)
Cost of sales 5,858,100  5,975,500  6,189,500  5,753,400  6,402,700  6,944,100 
Inventories 404,800  388,300  396,100  335,400  619,900  657,800 
Short-term Activity Ratio
Inventory turnover1 14.47 15.39 15.63 17.15 10.33 10.56
Benchmarks
Inventory Turnover, Competitors2
Linde plc 8.90 9.81 5.50 10.51
Inventory Turnover, Industry
Materials 4.81 5.16 3.51 4.10

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).

1 2020 Calculation
Inventory turnover = Cost of sales ÷ Inventories
= 5,858,100 ÷ 404,800 = 14.47

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Air Products & Chemicals Inc. inventory turnover ratio deteriorated from 2018 to 2019 and from 2019 to 2020.

Receivables Turnover

Air Products & Chemicals Inc., receivables turnover calculation, comparison to benchmarks

Microsoft Excel
Sep 30, 2020 Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015
Selected Financial Data (US$ in thousands)
Sales 8,856,300  8,918,900  8,930,200  8,187,600  9,524,400  9,894,900 
Trade receivables, net 1,274,800  1,260,200  1,207,200  1,174,000  1,439,900  1,406,200 
Short-term Activity Ratio
Receivables turnover1 6.95 7.08 7.40 6.97 6.61 7.04
Benchmarks
Receivables Turnover, Competitors2
Linde plc 6.54 6.53 3.47 6.34
Receivables Turnover, Industry
Materials 8.19 8.42 6.54 9.13

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).

1 2020 Calculation
Receivables turnover = Sales ÷ Trade receivables, net
= 8,856,300 ÷ 1,274,800 = 6.95

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Receivables turnover An activity ratio equal to revenue divided by receivables. Air Products & Chemicals Inc. receivables turnover ratio deteriorated from 2018 to 2019 and from 2019 to 2020.

Payables Turnover

Air Products & Chemicals Inc., payables turnover calculation, comparison to benchmarks

Microsoft Excel
Sep 30, 2020 Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015
Selected Financial Data (US$ in thousands)
Cost of sales 5,858,100  5,975,500  6,189,500  5,753,400  6,402,700  6,944,100 
Trade creditors 546,200  528,200  924,600  659,500  676,100  638,900 
Short-term Activity Ratio
Payables turnover1 10.73 11.31 6.69 8.72 9.47 10.87
Benchmarks
Payables Turnover, Competitors2
Linde plc 4.97 5.10 2.82 6.64
Payables Turnover, Industry
Materials 5.92 6.05 4.62 7.86

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).

1 2020 Calculation
Payables turnover = Cost of sales ÷ Trade creditors
= 5,858,100 ÷ 546,200 = 10.73

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Air Products & Chemicals Inc. payables turnover ratio increased from 2018 to 2019 but then slightly decreased from 2019 to 2020.

Working Capital Turnover

Air Products & Chemicals Inc., working capital turnover calculation, comparison to benchmarks

Microsoft Excel
Sep 30, 2020 Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015
Selected Financial Data (US$ in thousands)
Current assets 8,684,900  4,618,300  5,082,200  5,876,700  4,317,300  2,910,800 
Less: Current liabilities 2,416,700  1,820,900  2,338,300  2,489,000  3,283,300  3,648,100 
Working capital 6,268,200  2,797,400  2,743,900  3,387,700  1,034,000  (737,300)
 
Sales 8,856,300  8,918,900  8,930,200  8,187,600  9,524,400  9,894,900 
Short-term Activity Ratio
Working capital turnover1 1.41 3.19 3.25 2.42 9.21
Benchmarks
Working Capital Turnover, Competitors2
Linde plc 3.45
Working Capital Turnover, Industry
Materials 13.50 14.71 2.86 4.87

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).

1 2020 Calculation
Working capital turnover = Sales ÷ Working capital
= 8,856,300 ÷ 6,268,200 = 1.41

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Working capital turnover An activity ratio calculated as revenue divided by working capital. Air Products & Chemicals Inc. working capital turnover ratio deteriorated from 2018 to 2019 and from 2019 to 2020.

Average Inventory Processing Period

Air Products & Chemicals Inc., average inventory processing period calculation, comparison to benchmarks

Microsoft Excel
Sep 30, 2020 Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015
Selected Financial Data
Inventory turnover 14.47 15.39 15.63 17.15 10.33 10.56
Short-term Activity Ratio (no. days)
Average inventory processing period1 25 24 23 21 35 35
Benchmarks (no. days)
Average Inventory Processing Period, Competitors2
Linde plc 41 37 66 35
Average Inventory Processing Period, Industry
Materials 76 71 104 89

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).

1 2020 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 14.47 = 25

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. Air Products & Chemicals Inc. number of days of inventory outstanding deteriorated from 2018 to 2019 and from 2019 to 2020.

Average Receivable Collection Period

Air Products & Chemicals Inc., average receivable collection period calculation, comparison to benchmarks

Microsoft Excel
Sep 30, 2020 Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015
Selected Financial Data
Receivables turnover 6.95 7.08 7.40 6.97 6.61 7.04
Short-term Activity Ratio (no. days)
Average receivable collection period1 53 52 49 52 55 52
Benchmarks (no. days)
Average Receivable Collection Period, Competitors2
Linde plc 56 56 105 58
Average Receivable Collection Period, Industry
Materials 45 43 56 40

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).

1 2020 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 6.95 = 53

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. Air Products & Chemicals Inc. number of days of receivables outstanding deteriorated from 2018 to 2019 and from 2019 to 2020.

Operating Cycle

Air Products & Chemicals Inc., operating cycle calculation, comparison to benchmarks

No. days

Microsoft Excel
Sep 30, 2020 Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015
Selected Financial Data
Average inventory processing period 25 24 23 21 35 35
Average receivable collection period 53 52 49 52 55 52
Short-term Activity Ratio
Operating cycle1 78 76 72 73 90 87
Benchmarks
Operating Cycle, Competitors2
Linde plc 97 93 171 93
Operating Cycle, Industry
Materials 121 114 160 129

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).

1 2020 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 25 + 53 = 78

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Operating cycle Equal to average inventory processing period plus average receivables collection period. Air Products & Chemicals Inc. operating cycle deteriorated from 2018 to 2019 and from 2019 to 2020.

Average Payables Payment Period

Air Products & Chemicals Inc., average payables payment period calculation, comparison to benchmarks

Microsoft Excel
Sep 30, 2020 Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015
Selected Financial Data
Payables turnover 10.73 11.31 6.69 8.72 9.47 10.87
Short-term Activity Ratio (no. days)
Average payables payment period1 34 32 55 42 39 34
Benchmarks (no. days)
Average Payables Payment Period, Competitors2
Linde plc 73 72 129 55
Average Payables Payment Period, Industry
Materials 62 60 79 46

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).

1 2020 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 10.73 = 34

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. Air Products & Chemicals Inc. number of days of payables outstanding decreased from 2018 to 2019 but then slightly increased from 2019 to 2020.

Cash Conversion Cycle

Air Products & Chemicals Inc., cash conversion cycle calculation, comparison to benchmarks

No. days

Microsoft Excel
Sep 30, 2020 Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015
Selected Financial Data
Average inventory processing period 25 24 23 21 35 35
Average receivable collection period 53 52 49 52 55 52
Average payables payment period 34 32 55 42 39 34
Short-term Activity Ratio
Cash conversion cycle1 44 44 17 31 51 53
Benchmarks
Cash Conversion Cycle, Competitors2
Linde plc 24 21 42 38
Cash Conversion Cycle, Industry
Materials 59 54 81 83

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).

1 2020 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 25 + 5334 = 44

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period.