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 (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. |
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 | |||||||
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. |
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 | |||||||
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. |
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 | |||||||
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. |
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 | |||||||
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. |
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 | |||||||
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. |
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 | |||||||
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. |
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 | |||||||
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. |
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 | |||||||
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. |
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 | |||||||
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. |