Analysis of Debt
Total Debt (Carrying Amount)
Air Products & Chemicals Inc., balance sheet: debt
US$ in thousands
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).
Debt item | Description | The company |
---|---|---|
Total debt (carrying amount) | Sum of the carrying values as of the balance sheet date of all debt plus capital lease obligations. | Air Products & Chemicals Inc.’s total debt decreased from 2018 to 2019 but then increased from 2019 to 2020 exceeding 2018 level. |
Total Debt (Fair Value)
Sep 30, 2020 | |
---|---|
Selected Financial Data (US$ in thousands) | |
Short-term borrowings | 7,700 |
Long-term debt, including current portion and related party | 8,278,400 |
Total debt (fair value) | 8,286,100 |
Financial Ratio | |
Debt, fair value to carrying amount ratio | 1.05 |
Based on: 10-K (filing date: 2020-11-19).
Weighted-average Interest Rate on Debt
Weighted average interest rate of debt: 1.98%
Interest rate | Debt amount1 | Interest rate × Debt amount | Weighted-average interest rate2 |
---|---|---|---|
8.75% | 18,400 | 1,610 | |
7.60% | 17,200 | 1,307 | |
3.00% | 400,000 | 12,000 | |
2.75% | 400,000 | 11,000 | |
3.35% | 400,000 | 13,400 | |
1.50% | 550,000 | 8,250 | |
1.85% | 650,000 | 12,025 | |
2.05% | 900,000 | 18,450 | |
2.70% | 750,000 | 20,250 | |
2.80% | 950,000 | 26,600 | |
0.10% | 631,900 | 632 | |
0.38% | 410,300 | 1,539 | |
1.00% | 351,700 | 3,517 | |
0.50% | 586,200 | 2,931 | |
0.80% | 586,200 | 4,690 | |
5.50% | 338,500 | 18,618 | |
10.90% | 9,200 | 1,003 | |
1.60% | 7,700 | 123 | |
Total | 7,957,300 | 157,944 | |
1.98% |
Based on: 10-K (filing date: 2020-11-19).
1 US$ in thousands
2 Weighted-average interest rate = 100 × 157,944 ÷ 7,957,300 = 1.98%
Interest Costs Incurred
Air Products & Chemicals Inc., interest costs incurred
US$ in thousands
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).
Debt item | Description | The company |
---|---|---|
Interest expense | Amount of the cost of borrowed funds accounted for as interest expense for debt. | Air Products & Chemicals Inc.’s interest expense increased from 2018 to 2019 but then decreased significantly from 2019 to 2020. |
Capitalized interest | Amount of interest costs capitalized disclosed as an adjusting item to interest costs incurred. | Air Products & Chemicals Inc.’s capitalized interest decreased from 2018 to 2019 but then slightly increased from 2019 to 2020. |
Interest costs incurred | Total interest costs incurred during the period and either capitalized or charged against earnings. | Air Products & Chemicals Inc.’s interest costs incurred increased from 2018 to 2019 but then decreased significantly from 2019 to 2020. |
Adjusted Interest Coverage Ratio
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).
2020 Calculations
1 Interest coverage ratio (without capitalized interest) = EBIT ÷ Interest expense
= 2,533,100 ÷ 109,300 = 23.18
2 Adjusted interest coverage ratio (with capitalized interest) = EBIT ÷ Interest costs incurred
= 2,533,100 ÷ 125,200 = 20.23
Solvency ratio | Description | The company |
---|---|---|
Adjusted interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments (including capitalized interest). | Air Products & Chemicals Inc.’s adjusted interest coverage ratio improved from 2018 to 2019 and from 2019 to 2020. |