Air Products & Chemicals (Air Products & Chemicals) Inventory Turnover : 3.04 (As of Dec. 2023)

View and export this data going back to 1961. Start your Free Trial

What is Air Products & Chemicals Inventory Turnover?

Inventory Turnover measures how fast the company turns over its inventory within a year. It is calculated as Cost of Goods Sold divided by Total Inventories. Air Products & Chemicals's Cost of Goods Sold for the three months ended in Dec. 2023 was $2,067 Mil. Air Products & Chemicals's Average Total Inventories for the quarter that ended in Dec. 2023 was $681 Mil. Air Products & Chemicals's Inventory Turnover for the quarter that ended in Dec. 2023 was 3.04.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Air Products & Chemicals's Days Inventory for the three months ended in Dec. 2023 was 30.04.

Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue. Air Products & Chemicals's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.23.

Air Products & Chemicals Inventory Turnover Historical Data

The historical data trend for Air Products & Chemicals's Inventory Turnover can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Air Products & Chemicals Inventory Turnover Chart

Air Products & Chemicals Annual Data

Trend

Sep14

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

Inventory Turnover

Get a 7-Day Free Trial

15.24

14.77

16.74

19.29

15.15

Air Products & Chemicals Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Inventory Turnover	Get a 7-Day Free Trial															3.95	3.56	3.16	3.36	3.04

Air Products & Chemicals Inventory Turnover Calculation

Air Products & Chemicals's Inventory Turnover for the fiscal year that ended in Sep. 2023 is calculated as

	Inventory Turnover (A: Sep. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Sep. 2023 )	/ (	(Total Inventories (A: Sep. 2022 )	+	Total Inventories (A: Sep. 2023 ))	/	count )
=	8833	/ (	(514.2	+	651.8)	/	2 )
=	8833	/	583
=	15.15

Air Products & Chemicals's Inventory Turnover for the quarter that ended in Dec. 2023 is calculated as

	Inventory Turnover (Q: Dec. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Dec. 2023 )	/ (	(Total Inventories (Q: Sep. 2023 )	+	Total Inventories (Q: Dec. 2023 ))	/	count )
=	2067.2	/ (	(651.8	+	709.3)	/	2 )
=	2067.2	/	680.55
=	3.04

Air Products & Chemicals (NYSE:APD) Inventory Turnover Explanation

Inventory Turnover measures how fast the company turns over its inventory within a year. A higher Inventory Turnover means the company has light inventory. Therefore the company spends less money on storage, write downs, and obsolete inventory. If the inventory is too light, it may affect sales because the company may not have enough to meet demand.

1. Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

Air Products & Chemicals's Days Inventory for the three months ended in Dec. 2023 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Dec. 2023 )	/	Cost of Goods Sold (Q: Dec. 2023 )	*	Days in Period
	=	680.55	/	2067.2	*	365 / 4
	=	30.04

2. Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue.

Air Products & Chemicals's Inventory to Revenue for the quarter that ended in Dec. 2023 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	680.55	/	2997.4
	=	0.23

Be Aware

Usually retailers pile up their inventories at holiday seasons to meet the stronger demand. Therefore, the inventory of a particular quarter of a year should not be used to calculate Inventory Turnover. An average inventory is a better indication.

Air Products & Chemicals Inventory Turnover Related Terms

Thank you for viewing the detailed overview of Air Products & Chemicals's Inventory Turnover provided by GuruFocus.com. Please click on the following links to see related term pages.

Air Products & Chemicals (Air Products & Chemicals) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Air Products & Chemicals Inc (NYSE:APD) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

1APD:Italy AP3:Germany AP3:Germany AP3:Germany A1PD34:Brazil APCD:Austria

Address

1940 Air Products Boulevard, Allentown, PA, USA, 18106-5500

Website

https://www.airproducts.com

Since its founding in 1940, Air Products has become one of the leading industrial gas suppliers globally, with operations in 50 countries and 19,000 employees. The company is the largest supplier of hydrogen and helium in the world. It has a unique portfolio serving customers in a number of industries, including chemicals, energy, healthcare, metals, and electronics. Air Products generated $12.6 billion in revenue in fiscal 2023.

Executives

Jeffrey Kutz	officer: VP, Controller & PAO	1940 AIR PRODUCTS BLVD., ALLENTOWN PA 18106-5500
Seifi Ghasemi	director	100 OVERLOOK CENTER, PRINCETON NJ 08540
Sean D Major	officer: Executive VP & General Counsel	100 E. WISCONSIN AVENUE, SUITE 2780, MILWAUKEE WI 53202
Tonit M Calaway	director	HARLEY-DAVIDSON MOTOR COMPANY, 3700 WEST JUNEAU AVENUE, MILWAUKEE WI 53208
Wayne Thomas Smith	director	1940 AIR PRODUCTS BLVD., ALLENTOWN PA 18106
Melissa N. Schaeffer	officer: Senior Vice President and CFO	1940 AIR PRODUCTS BLVD., ALLENTOWN PA 18106
Edward L Monser	director
Lisa Ann Davis	director	2555 TELEGRAPH RD, BLOOMFIELD HILLS MI 48302
Russell A Flugel	officer: Chief Accounting Officer	C/O THE MOSAIC COMPANY, 101 EAST KENNEDY BLVD., SUITE 2500, TAMPA FL 33602
Charles I Cogut	director	7201 HAMILTON BOULEVARD, ALLENTOWN PA 18195
Samir Serhan	officer: Executive Vice President	7201 HAMILTON BLVD., ALLENTOWN PA 18195
Jennifer Grant	officer: VP	7201 HAMILTON BLVD, ALLENTOWN PA 18195
John D. Stanley	officer: SR VP and General Counsel	7201 HAMILTON BOULEVARD, ALLENTOWN PA 18195-1501
Guillermo Novo	officer: Senior V.P.	AIR PRODUCTS AND CHEMICALS, INC., 7201 HAMILTON BOULEVARD, ALLENTOWN PA 18195
Painter Corning F.	officer: Senior V.P.	7201 HAMILTON BOULEVARD, ALLENTOWN PA 18195-1501