Stock Analysis on Net

Air Products & Chemicals Inc. (NYSE:APD)

This company has been moved to the archive! The financial data has not been updated since August 9, 2021.

Analysis of Debt

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Total Debt (Carrying Amount)

Air Products & Chemicals Inc., balance sheet: debt

US$ in thousands

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Sep 30, 2020 Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015
Short-term borrowings 7,700 58,200 54,300 144,000 935,800 1,494,300
Current portion of long-term debt 470,000 40,400 406,600 416,400 371,300 435,600
Long-term debt, excluding current portion 7,132,900 2,907,300 2,967,400 3,402,400 4,918,100 3,949,100
Long-term debt, related party 297,200 320,100 384,300
Total debt (carrying amount) 7,907,800 3,326,000 3,812,600 3,962,800 6,225,200 5,879,000

Based on: 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30).

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. total debt decreased from 2018 to 2019 but then increased from 2019 to 2020 exceeding 2018 level.

Total Debt (Fair Value)

Microsoft Excel
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 (reporting date: 2020-09-30).


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 (reporting date: 2020-09-30).

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

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12 months ended: Sep 30, 2020 Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015
Interest expense 109,300 137,000 130,500 120,600 115,500 103,500
Capitalized interest 15,900 13,500 19,500 19,000 32,900 49,100
Interest costs incurred 125,200 150,500 150,000 139,600 148,400 152,600

Based on: 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30).

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. 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. 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. interest costs incurred increased from 2018 to 2019 but then decreased significantly from 2019 to 2020.

Adjusted Interest Coverage Ratio

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Sep 30, 2020 Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015
Selected Financial Data (US$ in thousands)
Net income attributable to Air Products 1,886,700 1,760,000 1,497,800 3,000,400 631,100 1,277,900
Add: Net income attributable to noncontrolling interest 44,400 49,400 35,100 20,800 30,400 39,700
Less: Income (loss) from discontinued operations, net of tax (14,300) 42,200 1,866,000 (884,200)
Add: Income tax expense 478,400 480,100 524,300 260,900 586,500 415,900
Add: Interest expense 109,300 137,000 130,500 120,600 115,500 103,500
Earnings before interest and tax (EBIT) 2,533,100 2,426,500 2,145,500 1,536,700 2,247,700 1,837,000
 
Interest costs incurred 125,200 150,500 150,000 139,600 148,400 152,600
Financial Ratio With and Without Capitalized Interest
Interest coverage ratio (without capitalized interest)1 23.18 17.71 16.44 12.74 19.46 17.75
Adjusted interest coverage ratio (with capitalized interest)2 20.23 16.12 14.30 11.01 15.15 12.04

Based on: 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30).

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. adjusted interest coverage ratio improved from 2018 to 2019 and from 2019 to 2020.