Current Ratio
Higher than 7% of Basic Materials sector peers
Updated 1878h ago
Sector Performance
7th percentileAPD
1.43x
Sector Median
2.84x
Sector Avg
5.57x
Deep Analysis
Air Products and Chemicals’ current ratio of 1.43x means the company has $1.43 in short-term assets—like cash and receivables—for every $1 of short-term debt due within a year, a basic measure of liquidity.
This is well below the Basic Materials sector median of 2.84x, placing APD in the 7th percentile among its peers, indicating a weaker liquidity position relative to most competitors. Because the year-over-year, quarter-over-quarter, and eight-quarter trend are all reported as N/A, no direction can be assessed from the single historical value of 1.43x. The combination of a low ratio with no trend data points to a potential liquidity risk, as the company has less of a cushion to cover near-term obligations compared to the typical sector firm. This metric directly supports the overall CAUTIOUS verdict, since a current ratio far below the sector median suggests limited financial flexibility that could amplify vulnerability in a downturn.
Frequently Asked Questions
What does the Current Ratio tell investors about APD?
Measures short-term financial health. A ratio above 1.5 is generally healthy; below 1.0 may indicate liquidity stress.
How is the Current Ratio calculated?
Current Ratio is calculated as: Current Assets / Current Liabilities.
How does APD's Current Ratio compare to its sector?
APD's Current Ratio of 1.43x compares to a Basic Materials sector median of 2.84x, placing it in the 7th percentile.
Who are APD's closest peers by Current Ratio?
The closest Basic Materials peers by Current Ratio include: KGC (2.84x), PAAS (2.84x), AG (2.73x), AEM (3.15x), RGLD (3.52x).
The Formula
Current Assets / Current Liabilities
Why It Matters
Measures short-term financial health. A ratio above 1.5 is generally healthy; below 1.0 may indicate liquidity stress.
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1.43x
Sector Median
2.84x
Sector Avg
5.57x
How APD's Current Ratio compares to sector peers.
Also Analyze
Not financial advice. Research tool only. Data may be delayed.