Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.

Short-term Activity Ratios (Summary)
Inventory Turnover
Receivables Turnover
Payables Turnover
Working Capital Turnover
Average Inventory Processing Period
Average Receivable Collection Period
Operating Cycle
Average Payables Payment Period
Cash Conversion Cycle

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

	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 (filing date: 2020-11-19), 10-K (filing date: 2019-11-26), 10-K (filing date: 2018-11-20), 10-K (filing date: 2017-11-16), 10-K (filing date: 2016-11-21), 10-K (filing date: 2015-11-24).

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.’s 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.’s 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.’s 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.’s 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.’s 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.’s 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.’s 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.’s 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.

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

	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
Ecolab Inc.	—	5.79	5.58	5.12	5.23	5.20
Linde plc	8.90	9.81	5.50	10.51	10.65	—
Inventory Turnover, Sector
Chemicals	—	8.73	6.65	8.19	7.70	—
Inventory Turnover, Industry
Basic Materials	—	7.93	6.63	7.69	7.38	—

Based on: 10-K (filing date: 2020-11-19), 10-K (filing date: 2019-11-26), 10-K (filing date: 2018-11-20), 10-K (filing date: 2017-11-16), 10-K (filing date: 2016-11-21), 10-K (filing date: 2015-11-24).

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.’s inventory turnover ratio deteriorated from 2018 to 2019 and from 2019 to 2020.

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

	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
Ecolab Inc.	—	5.33	5.51	5.38	5.62	5.67
Linde plc	6.54	6.53	3.47	6.34	6.42	—
Receivables Turnover, Sector
Chemicals	—	6.21	4.71	6.03	6.13	—
Receivables Turnover, Industry
Basic Materials	—	7.06	5.43	7.19	7.19	—

Based on: 10-K (filing date: 2020-11-19), 10-K (filing date: 2019-11-26), 10-K (filing date: 2018-11-20), 10-K (filing date: 2017-11-16), 10-K (filing date: 2016-11-21), 10-K (filing date: 2015-11-24).

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.’s receivables turnover ratio deteriorated from 2018 to 2019 and from 2019 to 2020.

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

	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
Ecolab Inc.	—	6.79	6.87	6.29	7.02	6.88
Linde plc	4.97	5.10	2.82	6.64	6.47	—
Payables Turnover, Sector
Chemicals	—	6.17	4.43	6.98	7.47	—
Payables Turnover, Industry
Basic Materials	—	6.50	4.91	7.43	7.95	—

Based on: 10-K (filing date: 2020-11-19), 10-K (filing date: 2019-11-26), 10-K (filing date: 2018-11-20), 10-K (filing date: 2017-11-16), 10-K (filing date: 2016-11-21), 10-K (filing date: 2015-11-24).

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.’s payables turnover ratio increased from 2018 to 2019 but then slightly decreased from 2019 to 2020.

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

	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
Ecolab Inc.	—	12.44	14.79	11.88	10.44	—
Linde plc	—	—	3.45	—	26.20	—
Working Capital Turnover, Sector
Chemicals	—	23.80	4.78	7.39	12.32	—
Working Capital Turnover, Industry
Basic Materials	—	10.17	3.96	4.98	7.10	—

Based on: 10-K (filing date: 2020-11-19), 10-K (filing date: 2019-11-26), 10-K (filing date: 2018-11-20), 10-K (filing date: 2017-11-16), 10-K (filing date: 2016-11-21), 10-K (filing date: 2015-11-24).

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.’s working capital turnover ratio deteriorated from 2018 to 2019 and from 2019 to 2020.

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

	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
Ecolab Inc.	—	63	65	71	70	70
Linde plc	41	37	66	35	34	—
Average Inventory Processing Period, Sector
Chemicals	—	42	55	45	47	—
Average Inventory Processing Period, Industry
Basic Materials	—	46	55	47	49	—

Based on: 10-K (filing date: 2020-11-19), 10-K (filing date: 2019-11-26), 10-K (filing date: 2018-11-20), 10-K (filing date: 2017-11-16), 10-K (filing date: 2016-11-21), 10-K (filing date: 2015-11-24).

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.’s number of days of inventory outstanding deteriorated from 2018 to 2019 and from 2019 to 2020.

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

	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
Ecolab Inc.	—	68	66	68	65	64
Linde plc	56	56	105	58	57	—
Average Receivable Collection Period, Sector
Chemicals	—	59	77	61	60	—
Average Receivable Collection Period, Industry
Basic Materials	—	52	67	51	51	—

Based on: 10-K (filing date: 2020-11-19), 10-K (filing date: 2019-11-26), 10-K (filing date: 2018-11-20), 10-K (filing date: 2017-11-16), 10-K (filing date: 2016-11-21), 10-K (filing date: 2015-11-24).

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.’s number of days of receivables outstanding deteriorated from 2018 to 2019 and from 2019 to 2020.

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

No. days

	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
Ecolab Inc.	—	131	131	139	135	134
Linde plc	97	93	171	93	91	—
Operating Cycle, Sector
Chemicals	—	101	132	106	107	—
Operating Cycle, Industry
Basic Materials	—	98	122	98	100	—

Based on: 10-K (filing date: 2020-11-19), 10-K (filing date: 2019-11-26), 10-K (filing date: 2018-11-20), 10-K (filing date: 2017-11-16), 10-K (filing date: 2016-11-21), 10-K (filing date: 2015-11-24).

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.’s operating cycle deteriorated from 2018 to 2019 and from 2019 to 2020.

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

	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
Ecolab Inc.	—	54	53	58	52	53
Linde plc	73	72	129	55	56	—
Average Payables Payment Period, Sector
Chemicals	—	59	82	52	49	—
Average Payables Payment Period, Industry
Basic Materials	—	56	74	49	46	—

Based on: 10-K (filing date: 2020-11-19), 10-K (filing date: 2019-11-26), 10-K (filing date: 2018-11-20), 10-K (filing date: 2017-11-16), 10-K (filing date: 2016-11-21), 10-K (filing date: 2015-11-24).

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.’s number of days of payables outstanding decreased from 2018 to 2019 but then slightly increased from 2019 to 2020.

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

No. days

	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
Ecolab Inc.	—	77	78	81	83	81
Linde plc	24	21	42	38	35	—
Cash Conversion Cycle, Sector
Chemicals	—	42	50	54	58	—
Cash Conversion Cycle, Industry
Basic Materials	—	42	48	49	54	—

Based on: 10-K (filing date: 2020-11-19), 10-K (filing date: 2019-11-26), 10-K (filing date: 2018-11-20), 10-K (filing date: 2017-11-16), 10-K (filing date: 2016-11-21), 10-K (filing date: 2015-11-24).

¹ 2020 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 25 + 53 – 34 = 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.

Air Products & Chemicals Inc. (NYSE:APD)

Analysis of Short-term (Operating) Activity Ratios

Short-term Activity Ratios (Summary)

Inventory Turnover

Receivables Turnover

Payables Turnover

Working Capital Turnover

Average Inventory Processing Period

Average Receivable Collection Period

Operating Cycle

Average Payables Payment Period

Cash Conversion Cycle