Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Air Products & Chemicals Inc. (NYSE:APD)

Analysis of Short-term (Operating) Activity Ratios

Beginner level

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)

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

Microsoft Excel LibreOffice Calc
Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015 Sep 30, 2014
Turnover Ratios
Inventory turnover 15.39 15.63 17.15 10.33 10.56 10.81
Receivables turnover 7.08 7.40 6.97 6.61 7.04 7.02
Payables turnover 11.51 10.41 8.72 9.47 10.87 10.31
Working capital turnover 3.19 3.25 2.42 9.21 — 31.46
Average No. Days
Average inventory processing period 24 23 21 35 35 34
Add: Average receivable collection period 52 49 52 55 52 52
Operating cycle 76 72 73 90 87 86
Less: Average payables payment period 32 35 42 39 34 35
Cash conversion cycle 44 37 31 51 53 51

Based on: 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), 10-K (filing date: 2014-11-24).

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 2017 to 2018 and from 2018 to 2019.
Receivables turnover An activity ratio equal to revenue divided by receivables. Air Products & Chemicals Inc.’s receivables turnover ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019 not reaching 2017 level.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Air Products & Chemicals Inc.’s payables turnover ratio increased from 2017 to 2018 and from 2018 to 2019.
Working capital turnover An activity ratio calculated as revenue divided by working capital. Air Products & Chemicals Inc.’s working capital turnover ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019.
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 2017 to 2018 and from 2018 to 2019.
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover.
Operating cycle Equal to average inventory processing period plus average receivables collection period. Air Products & Chemicals Inc.’s operating cycle improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.
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 2017 to 2018 and from 2018 to 2019.
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.’s cash conversion cycle deteriorated from 2017 to 2018 and from 2018 to 2019.

Inventory Turnover

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

Microsoft Excel LibreOffice Calc
Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015 Sep 30, 2014
Selected Financial Data (US$ in thousands)
Cost of sales 5,975,500  6,189,500  5,753,400  6,402,700  6,944,100  7,634,600 
Inventories 388,300  396,100  335,400  619,900  657,800  706,000 
Short-term Activity Ratio
Inventory turnover1 15.39 15.63 17.15 10.33 10.56 10.81
Benchmarks
Inventory Turnover, Competitors2
Ecolab Inc. 5.79 5.58 5.12 5.23 5.20 —
Linde plc 9.81 5.50 10.51 10.65 11.22 —
Inventory Turnover, Sector
Chemicals 8.73 6.65 8.19 7.70 7.81 —
Inventory Turnover, Industry
Basic Materials 7.93 6.63 7.69 7.38 7.44 —

Based on: 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), 10-K (filing date: 2014-11-24).

1 2019 Calculation
Inventory turnover = Cost of sales ÷ Inventories
= 5,975,500 ÷ 388,300 = 15.39

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 2017 to 2018 and from 2018 to 2019.

Receivables Turnover

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

Microsoft Excel LibreOffice Calc
Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015 Sep 30, 2014
Selected Financial Data (US$ in thousands)
Sales 8,918,900  8,930,200  8,187,600  9,524,400  9,894,900  10,439,000 
Trade receivables, net 1,260,200  1,207,200  1,174,000  1,439,900  1,406,200  1,486,000 
Short-term Activity Ratio
Receivables turnover1 7.08 7.40 6.97 6.61 7.04 7.02
Benchmarks
Receivables Turnover, Competitors2
Ecolab Inc. 5.33 5.51 5.38 5.62 5.67 —
Linde plc 6.53 3.47 6.34 6.42 6.73 —
Receivables Turnover, Sector
Chemicals 6.21 4.71 6.03 6.13 6.34 —
Receivables Turnover, Industry
Basic Materials 7.06 5.43 7.19 7.19 7.41 —

Based on: 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), 10-K (filing date: 2014-11-24).

1 2019 Calculation
Receivables turnover = Sales ÷ Trade receivables, net
= 8,918,900 ÷ 1,260,200 = 7.08

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 improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019 not reaching 2017 level.

Payables Turnover

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

Microsoft Excel LibreOffice Calc
Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015 Sep 30, 2014
Selected Financial Data (US$ in thousands)
Cost of sales 5,975,500  6,189,500  5,753,400  6,402,700  6,944,100  7,634,600 
Trade creditors 519,300  594,600  659,500  676,100  638,900  740,600 
Short-term Activity Ratio
Payables turnover1 11.51 10.41 8.72 9.47 10.87 10.31
Benchmarks
Payables Turnover, Competitors2
Ecolab Inc. 6.79 6.87 6.29 7.02 6.88 —
Linde plc 5.10 2.82 6.64 6.47 7.53 —
Payables Turnover, Sector
Chemicals 6.18 4.71 6.98 7.47 8.12 —
Payables Turnover, Industry
Basic Materials 6.51 5.21 7.43 7.95 8.50 —

Based on: 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), 10-K (filing date: 2014-11-24).

1 2019 Calculation
Payables turnover = Cost of sales ÷ Trade creditors
= 5,975,500 ÷ 519,300 = 11.51

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 2017 to 2018 and from 2018 to 2019.

Working Capital Turnover

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

Microsoft Excel LibreOffice Calc
Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015 Sep 30, 2014
Selected Financial Data (US$ in thousands)
Current assets 4,618,300  5,082,200  5,876,700  4,317,300  2,910,800  3,294,800 
Less: Current liabilities 1,820,900  2,338,300  2,489,000  3,283,300  3,648,100  2,963,000 
Working capital 2,797,400  2,743,900  3,387,700  1,034,000  (737,300) 331,800 
 
Sales 8,918,900  8,930,200  8,187,600  9,524,400  9,894,900  10,439,000 
Short-term Activity Ratio
Working capital turnover1 3.19 3.25 2.42 9.21 — 31.46
Benchmarks
Working Capital Turnover, Competitors2
Ecolab Inc. 12.44 14.79 11.88 10.44 — —
Linde plc — 3.45 — 26.20 14.70 —
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 12.92 —

Based on: 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), 10-K (filing date: 2014-11-24).

1 2019 Calculation
Working capital turnover = Sales ÷ Working capital
= 8,918,900 ÷ 2,797,400 = 3.19

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 improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019.

Average Inventory Processing Period

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

Microsoft Excel LibreOffice Calc
Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015 Sep 30, 2014
Selected Financial Data
Inventory turnover 15.39 15.63 17.15 10.33 10.56 10.81
Short-term Activity Ratio (no. days)
Average inventory processing period1 24 23 21 35 35 34
Benchmarks (no. days)
Average Inventory Processing Period, Competitors2
Ecolab Inc. 63 65 71 70 70 —
Linde plc 37 66 35 34 33 —
Average Inventory Processing Period, Sector
Chemicals 42 55 45 47 47 —
Average Inventory Processing Period, Industry
Basic Materials 46 55 47 49 49 —

Based on: 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), 10-K (filing date: 2014-11-24).

1 2019 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 15.39 = 24

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 2017 to 2018 and from 2018 to 2019.

Average Receivable Collection Period

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

Microsoft Excel LibreOffice Calc
Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015 Sep 30, 2014
Selected Financial Data
Receivables turnover 7.08 7.40 6.97 6.61 7.04 7.02
Short-term Activity Ratio (no. days)
Average receivable collection period1 52 49 52 55 52 52
Benchmarks (no. days)
Average Receivable Collection Period, Competitors2
Ecolab Inc. 68 66 68 65 64 —
Linde plc 56 105 58 57 54 —
Average Receivable Collection Period, Sector
Chemicals 59 77 61 60 58 —
Average Receivable Collection Period, Industry
Basic Materials 52 67 51 51 49 —

Based on: 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), 10-K (filing date: 2014-11-24).

1 2019 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 7.08 = 52

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.

Operating Cycle

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

No. days

Microsoft Excel LibreOffice Calc
Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015 Sep 30, 2014
Selected Financial Data
Average inventory processing period 24 23 21 35 35 34
Average receivable collection period 52 49 52 55 52 52
Short-term Activity Ratio
Operating cycle1 76 72 73 90 87 86
Benchmarks
Operating Cycle, Competitors2
Ecolab Inc. 131 131 139 135 134 —
Linde plc 93 171 93 91 87 —
Operating Cycle, Sector
Chemicals 101 132 106 107 105 —
Operating Cycle, Industry
Basic Materials 98 122 98 100 98 —

Based on: 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), 10-K (filing date: 2014-11-24).

1 2019 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 24 + 52 = 76

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 improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.

Average Payables Payment Period

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

Microsoft Excel LibreOffice Calc
Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015 Sep 30, 2014
Selected Financial Data
Payables turnover 11.51 10.41 8.72 9.47 10.87 10.31
Short-term Activity Ratio (no. days)
Average payables payment period1 32 35 42 39 34 35
Benchmarks (no. days)
Average Payables Payment Period, Competitors2
Ecolab Inc. 54 53 58 52 53 —
Linde plc 72 129 55 56 48 —
Average Payables Payment Period, Sector
Chemicals 59 77 52 49 45 —
Average Payables Payment Period, Industry
Basic Materials 56 70 49 46 43 —

Based on: 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), 10-K (filing date: 2014-11-24).

1 2019 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 11.51 = 32

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 2017 to 2018 and from 2018 to 2019.

Cash Conversion Cycle

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

No. days

Microsoft Excel LibreOffice Calc
Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015 Sep 30, 2014
Selected Financial Data
Average inventory processing period 24 23 21 35 35 34
Average receivable collection period 52 49 52 55 52 52
Average payables payment period 32 35 42 39 34 35
Short-term Activity Ratio
Cash conversion cycle1 44 37 31 51 53 51
Benchmarks
Cash Conversion Cycle, Competitors2
Ecolab Inc. 77 78 81 83 81 —
Linde plc 21 42 38 35 39 —
Cash Conversion Cycle, Sector
Chemicals 42 55 54 58 60 —
Cash Conversion Cycle, Industry
Basic Materials 42 52 49 54 55 —

Based on: 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), 10-K (filing date: 2014-11-24).

1 2019 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 24 + 52 – 32 = 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.’s cash conversion cycle deteriorated from 2017 to 2018 and from 2018 to 2019.