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The specific gravity of a substance is defined as the ratio of its density compared to the density of water. Since the density of water is approximately 1 gram per cubic centimeter (g/cm³), the specific gravity can be understood as a comparison to this standard. For propane in its liquid state, the specific gravity is indeed approximately 0.504. This means that liquid propane is about half as dense as water, which aligns with propane's classification as a gas that is lighter than air (in its gaseous state) and its physical properties in liquid form.

Understanding specific gravity is essential, particularly in applications related to buoyancy, separation processes, and chemical engineering. It helps in predicting how propane will behave in different environments, such as under varying temperatures and pressures.