Analysis of Short-term (Operating) Activity Ratios
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
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
| 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 | — | — | — | — | — | |
| Sherwin-Williams Co. | 5.37 | — | — | — | — | — | |
| Inventory Turnover, Sector | |||||||
| Chemicals | 7.09 | — | — | — | — | — | |
| Inventory Turnover, Industry | |||||||
| Materials | 4.94 | — | — | — | — | — | |
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
| 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 | — | — | — | — | — | |
| Sherwin-Williams Co. | 8.84 | — | — | — | — | — | |
| Receivables Turnover, Sector | |||||||
| Chemicals | 7.30 | — | — | — | — | — | |
| Receivables Turnover, Industry | |||||||
| Materials | 8.38 | — | — | — | — | — | |
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
| 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 | — | — | — | — | — | |
| Sherwin-Williams Co. | 4.57 | — | — | — | — | — | |
| Payables Turnover, Sector | |||||||
| Chemicals | 4.81 | — | — | — | — | — | |
| Payables Turnover, Industry | |||||||
| Materials | 5.49 | — | — | — | — | — | |
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
| 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 | — | — | — | — | — | — | |
| Sherwin-Williams Co. | — | — | — | — | — | — | |
| Working Capital Turnover, Sector | |||||||
| Chemicals | — | — | — | — | — | — | |
| Working Capital Turnover, Industry | |||||||
| Materials | 19.50 | — | — | — | — | — | |
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
| 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 | — | — | — | — | — | |
| Sherwin-Williams Co. | 68 | — | — | — | — | — | |
| Average Inventory Processing Period, Sector | |||||||
| Chemicals | 51 | — | — | — | — | — | |
| Average Inventory Processing Period, Industry | |||||||
| Materials | 74 | — | — | — | — | — | |
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
| 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 | — | — | — | — | — | |
| Sherwin-Williams Co. | 41 | — | — | — | — | — | |
| Average Receivable Collection Period, Sector | |||||||
| Chemicals | 50 | — | — | — | — | — | |
| Average Receivable Collection Period, Industry | |||||||
| Materials | 44 | — | — | — | — | — | |
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
| 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 | — | — | — | — | — | |
| Sherwin-Williams Co. | 109 | — | — | — | — | — | |
| Operating Cycle, Sector | |||||||
| Chemicals | 101 | — | — | — | — | — | |
| Operating Cycle, Industry | |||||||
| Materials | 118 | — | — | — | — | — | |
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
| 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 | — | — | — | — | — | |
| Sherwin-Williams Co. | 80 | — | — | — | — | — | |
| Average Payables Payment Period, Sector | |||||||
| Chemicals | 76 | — | — | — | — | — | |
| Average Payables Payment Period, Industry | |||||||
| Materials | 66 | — | — | — | — | — | |
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
| 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 | — | — | — | — | — | |
| Sherwin-Williams Co. | 29 | — | — | — | — | — | |
| Cash Conversion Cycle, Sector | |||||||
| Chemicals | 25 | — | — | — | — | — | |
| Cash Conversion Cycle, Industry | |||||||
| Materials | 52 | — | — | — | — | — | |
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 + 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. |