Stock Analysis on Net
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 Goodwill and Intangible Assets

Microsoft Excel

Goodwill and Intangible Asset Disclosure

Air Products & Chemicals Inc., balance sheet: goodwill and intangible assets

US$ in thousands

Microsoft Excel
Sep 30, 2020 Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015
Goodwill 891,500 797,100 788,900 721,500 1,150,200 1,131,300
Customer relationships 538,000 487,900 491,900 424,100 517,400 507,400
Patents and technology 39,100 39,000 34,000 13,400 76,600 76,900
Other 77,600 75,000 72,600 73,400 81,700 81,800
Finite-lived intangible assets, gross 654,700 601,900 598,500 510,900 675,700 666,100
Accumulated amortization/impairment (259,900) (226,500) (211,200) (189,500) (250,400) (217,900)
Finite-lived intangible assets, net 394,800 375,400 387,300 321,400 425,300 448,200
Trade names and trademarks 41,000 44,100 51,200 46,900 62,700 60,100
Indefinite-lived intangible assets 41,000 44,100 51,200 46,900 62,700 60,100
Intangible assets 435,800 419,500 438,500 368,300 488,000 508,300
Goodwill and intangible assets 1,327,300 1,216,600 1,227,400 1,089,800 1,638,200 1,639,600

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).

Item Description The company
Goodwill Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. Air Products & Chemicals Inc. goodwill increased from 2018 to 2019 and from 2019 to 2020.
Intangible assets Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges. Air Products & Chemicals Inc. intangible assets decreased from 2018 to 2019 but then increased from 2019 to 2020 not reaching 2018 level.
Goodwill and intangible assets Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges. Air Products & Chemicals Inc. goodwill and intangible assets decreased from 2018 to 2019 but then increased from 2019 to 2020 exceeding 2018 level.

Adjustments to Financial Statements: Removal of Goodwill

Air Products & Chemicals Inc., adjustments to financial statements

US$ in thousands

Microsoft Excel
Sep 30, 2020 Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015
Adjustment to Total Assets
Total assets (as reported) 25,168,500 18,942,800 19,178,300 18,467,200 18,055,300 17,438,100
Less: Goodwill 891,500 797,100 788,900 721,500 1,150,200 1,131,300
Total assets (adjusted) 24,277,000 18,145,700 18,389,400 17,745,700 16,905,100 16,306,800
Adjustment to Total Air Products Shareholders’ Equity
Total Air Products shareholders’ equity (as reported) 12,079,800 11,053,600 10,857,500 10,086,200 7,079,600 7,249,000
Less: Goodwill 891,500 797,100 788,900 721,500 1,150,200 1,131,300
Total Air Products shareholders’ equity (adjusted) 11,188,300 10,256,500 10,068,600 9,364,700 5,929,400 6,117,700
Adjustment to Net Income Attributable To Air Products
Net income attributable to Air Products (as reported) 1,886,700 1,760,000 1,497,800 3,000,400 631,100 1,277,900
Add: Goodwill impairment loss — — — 145,300 — —
Net income attributable to Air Products (adjusted) 1,886,700 1,760,000 1,497,800 3,145,700 631,100 1,277,900

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).

Air Products & Chemicals Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

Air Products & Chemicals Inc., adjusted financial ratios

Microsoft Excel
Sep 30, 2020 Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015
Net Profit Margin
Reported net profit margin 21.30% 19.73% 16.77% 36.65% 6.63% 12.91%
Adjusted net profit margin 21.30% 19.73% 16.77% 38.42% 6.63% 12.91%
Total Asset Turnover
Reported total asset turnover 0.35 0.47 0.47 0.44 0.53 0.57
Adjusted total asset turnover 0.36 0.49 0.49 0.46 0.56 0.61
Financial Leverage
Reported financial leverage 2.08 1.71 1.77 1.83 2.55 2.41
Adjusted financial leverage 2.17 1.77 1.83 1.89 2.85 2.67
Return on Equity (ROE)
Reported ROE 15.62% 15.92% 13.80% 29.75% 8.91% 17.63%
Adjusted ROE 16.86% 17.16% 14.88% 33.59% 10.64% 20.89%
Return on Assets (ROA)
Reported ROA 7.50% 9.29% 7.81% 16.25% 3.50% 7.33%
Adjusted ROA 7.77% 9.70% 8.14% 17.73% 3.73% 7.84%

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).

Financial ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. Air Products & Chemicals Inc. adjusted net profit margin ratio improved from 2018 to 2019 and from 2019 to 2020.
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Air Products & Chemicals Inc. adjusted total asset turnover ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Air Products & Chemicals Inc. adjusted financial leverage ratio decreased from 2018 to 2019 but then increased from 2019 to 2020 exceeding 2018 level.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Air Products & Chemicals Inc. adjusted ROE improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Air Products & Chemicals Inc. adjusted ROA improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

Air Products & Chemicals Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Microsoft Excel
Sep 30, 2020 Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015
As Reported
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
Sales 8,856,300 8,918,900 8,930,200 8,187,600 9,524,400 9,894,900
Profitability Ratio
Net profit margin1 21.30% 19.73% 16.77% 36.65% 6.63% 12.91%
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Adjusted net income attributable to Air Products 1,886,700 1,760,000 1,497,800 3,145,700 631,100 1,277,900
Sales 8,856,300 8,918,900 8,930,200 8,187,600 9,524,400 9,894,900
Profitability Ratio
Adjusted net profit margin2 21.30% 19.73% 16.77% 38.42% 6.63% 12.91%

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 Net profit margin = 100 × Net income attributable to Air Products ÷ Sales
= 100 × 1,886,700 ÷ 8,856,300 = 21.30%

2 Adjusted net profit margin = 100 × Adjusted net income attributable to Air Products ÷ Sales
= 100 × 1,886,700 ÷ 8,856,300 = 21.30%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. Air Products & Chemicals Inc. adjusted net profit margin ratio improved from 2018 to 2019 and from 2019 to 2020.

Adjusted Total Asset Turnover

Microsoft Excel
Sep 30, 2020 Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015
As Reported
Selected Financial Data (US$ in thousands)
Sales 8,856,300 8,918,900 8,930,200 8,187,600 9,524,400 9,894,900
Total assets 25,168,500 18,942,800 19,178,300 18,467,200 18,055,300 17,438,100
Activity Ratio
Total asset turnover1 0.35 0.47 0.47 0.44 0.53 0.57
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Sales 8,856,300 8,918,900 8,930,200 8,187,600 9,524,400 9,894,900
Adjusted total assets 24,277,000 18,145,700 18,389,400 17,745,700 16,905,100 16,306,800
Activity Ratio
Adjusted total asset turnover2 0.36 0.49 0.49 0.46 0.56 0.61

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 Total asset turnover = Sales ÷ Total assets
= 8,856,300 ÷ 25,168,500 = 0.35

2 Adjusted total asset turnover = Sales ÷ Adjusted total assets
= 8,856,300 ÷ 24,277,000 = 0.36

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Air Products & Chemicals Inc. adjusted total asset turnover ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

Adjusted Financial Leverage

Microsoft Excel
Sep 30, 2020 Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015
As Reported
Selected Financial Data (US$ in thousands)
Total assets 25,168,500 18,942,800 19,178,300 18,467,200 18,055,300 17,438,100
Total Air Products shareholders’ equity 12,079,800 11,053,600 10,857,500 10,086,200 7,079,600 7,249,000
Solvency Ratio
Financial leverage1 2.08 1.71 1.77 1.83 2.55 2.41
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Adjusted total assets 24,277,000 18,145,700 18,389,400 17,745,700 16,905,100 16,306,800
Adjusted total Air Products shareholders’ equity 11,188,300 10,256,500 10,068,600 9,364,700 5,929,400 6,117,700
Solvency Ratio
Adjusted financial leverage2 2.17 1.77 1.83 1.89 2.85 2.67

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 Financial leverage = Total assets ÷ Total Air Products shareholders’ equity
= 25,168,500 ÷ 12,079,800 = 2.08

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted total Air Products shareholders’ equity
= 24,277,000 ÷ 11,188,300 = 2.17

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Air Products & Chemicals Inc. adjusted financial leverage ratio decreased from 2018 to 2019 but then increased from 2019 to 2020 exceeding 2018 level.

Adjusted Return on Equity (ROE)

Microsoft Excel
Sep 30, 2020 Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015
As Reported
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
Total Air Products shareholders’ equity 12,079,800 11,053,600 10,857,500 10,086,200 7,079,600 7,249,000
Profitability Ratio
ROE1 15.62% 15.92% 13.80% 29.75% 8.91% 17.63%
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Adjusted net income attributable to Air Products 1,886,700 1,760,000 1,497,800 3,145,700 631,100 1,277,900
Adjusted total Air Products shareholders’ equity 11,188,300 10,256,500 10,068,600 9,364,700 5,929,400 6,117,700
Profitability Ratio
Adjusted ROE2 16.86% 17.16% 14.88% 33.59% 10.64% 20.89%

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 ROE = 100 × Net income attributable to Air Products ÷ Total Air Products shareholders’ equity
= 100 × 1,886,700 ÷ 12,079,800 = 15.62%

2 Adjusted ROE = 100 × Adjusted net income attributable to Air Products ÷ Adjusted total Air Products shareholders’ equity
= 100 × 1,886,700 ÷ 11,188,300 = 16.86%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Air Products & Chemicals Inc. adjusted ROE improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020.

Adjusted Return on Assets (ROA)

Microsoft Excel
Sep 30, 2020 Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015
As Reported
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
Total assets 25,168,500 18,942,800 19,178,300 18,467,200 18,055,300 17,438,100
Profitability Ratio
ROA1 7.50% 9.29% 7.81% 16.25% 3.50% 7.33%
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Adjusted net income attributable to Air Products 1,886,700 1,760,000 1,497,800 3,145,700 631,100 1,277,900
Adjusted total assets 24,277,000 18,145,700 18,389,400 17,745,700 16,905,100 16,306,800
Profitability Ratio
Adjusted ROA2 7.77% 9.70% 8.14% 17.73% 3.73% 7.84%

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 ROA = 100 × Net income attributable to Air Products ÷ Total assets
= 100 × 1,886,700 ÷ 25,168,500 = 7.50%

2 Adjusted ROA = 100 × Adjusted net income attributable to Air Products ÷ Adjusted total assets
= 100 × 1,886,700 ÷ 24,277,000 = 7.77%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Air Products & Chemicals Inc. adjusted ROA improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.