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 Inventory

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Inventory Disclosure

Air Products & Chemicals Inc., balance sheet: inventory

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
Finished goods 134,500 128,800 125,400 120,000 456,700 494,900
Work in process 21,300 27,500 21,200 15,700 38,200 34,400
Raw materials, supplies and other 249,000 232,000 249,500 223,000 204,000 229,300
FIFO Cost 404,800 388,300 396,100 358,700 698,900 758,600
Excess of FIFO cost over LIFO cost — — — (23,300) (79,000) (100,800)
Inventories 404,800 388,300 396,100 335,400 619,900 657,800

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
Inventories Amount after valuation and LIFO reserves of inventory expected to be sold, or consumed within one year or operating cycle, if longer. Air Products & Chemicals Inc. inventories decreased from 2018 to 2019 but then increased from 2019 to 2020 exceeding 2018 level.

Adjustment to Inventory: Conversion from LIFO to FIFO

Adjusting LIFO Inventory to FIFO (Current) Cost

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 Inventories
Inventories at LIFO (as reported) 404,800 388,300 396,100 335,400 619,900 657,800
Add: Inventory LIFO reserve — — — 23,300 79,000 100,800
Inventories at FIFO (adjusted) 404,800 388,300 396,100 358,700 698,900 758,600
Adjustment to Current Assets
Current assets (as reported) 8,684,900 4,618,300 5,082,200 5,876,700 4,317,300 2,910,800
Add: Inventory LIFO reserve — — — 23,300 79,000 100,800
Current assets (adjusted) 8,684,900 4,618,300 5,082,200 5,900,000 4,396,300 3,011,600
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
Add: Inventory LIFO reserve — — — 23,300 79,000 100,800
Total assets (adjusted) 25,168,500 18,942,800 19,178,300 18,490,500 18,134,300 17,538,900
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
Add: Inventory LIFO reserve — — — 23,300 79,000 100,800
Total Air Products shareholders’ equity (adjusted) 12,079,800 11,053,600 10,857,500 10,109,500 7,158,600 7,349,800
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: Increase (decrease) in inventory LIFO reserve — — (23,300) 11,600 (21,800) (4,600)
Net income attributable to Air Products (adjusted) 1,886,700 1,760,000 1,474,500 3,012,000 609,300 1,273,300

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. inventory value on Sep 30, 2020 would be $404,800 (in thousands) if the FIFO inventory method was used instead of LIFO. Air Products & Chemicals Inc. inventories, valued on a LIFO basis, on Sep 30, 2020 were $404,800. Air Products & Chemicals Inc. inventories would have been $— higher than reported on Sep 30, 2020 if the FIFO method had been used instead.

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

Adjusted Financial Ratios: LIFO vs. FIFO (Summary)

Air Products & Chemicals Inc., adjusted financial ratios

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Sep 30, 2020 Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015
Current Ratio
Reported current ratio (LIFO) 3.59 2.54 2.17 2.36 1.31 0.80
Adjusted current ratio (FIFO) 3.59 2.54 2.17 2.37 1.34 0.83
Net Profit Margin
Reported net profit margin (LIFO) 21.30% 19.73% 16.77% 36.65% 6.63% 12.91%
Adjusted net profit margin (FIFO) 21.30% 19.73% 16.51% 36.79% 6.40% 12.87%
Total Asset Turnover
Reported total asset turnover (LIFO) 0.35 0.47 0.47 0.44 0.53 0.57
Adjusted total asset turnover (FIFO) 0.35 0.47 0.47 0.44 0.53 0.56
Financial Leverage
Reported financial leverage (LIFO) 2.08 1.71 1.77 1.83 2.55 2.41
Adjusted financial leverage (FIFO) 2.08 1.71 1.77 1.83 2.53 2.39
Return on Equity (ROE)
Reported ROE (LIFO) 15.62% 15.92% 13.80% 29.75% 8.91% 17.63%
Adjusted ROE (FIFO) 15.62% 15.92% 13.58% 29.79% 8.51% 17.32%
Return on Assets (ROA)
Reported ROA (LIFO) 7.50% 9.29% 7.81% 16.25% 3.50% 7.33%
Adjusted ROA (FIFO) 7.50% 9.29% 7.69% 16.29% 3.36% 7.26%

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 current ratio A liquidity ratio calculated as adjusted current assets divided by current liabilities. Air Products & Chemicals Inc. adjusted current ratio improved from 2018 to 2019 and from 2019 to 2020.
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 Current Ratio

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)
Current assets 8,684,900 4,618,300 5,082,200 5,876,700 4,317,300 2,910,800
Current liabilities 2,416,700 1,820,900 2,338,300 2,489,000 3,283,300 3,648,100
Liquidity Ratio
Current ratio1 3.59 2.54 2.17 2.36 1.31 0.80
Adjusted: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in thousands)
Adjusted current assets 8,684,900 4,618,300 5,082,200 5,900,000 4,396,300 3,011,600
Current liabilities 2,416,700 1,820,900 2,338,300 2,489,000 3,283,300 3,648,100
Liquidity Ratio
Adjusted current ratio2 3.59 2.54 2.17 2.37 1.34 0.83

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 Current ratio = Current assets ÷ Current liabilities
= 8,684,900 ÷ 2,416,700 = 3.59

2 Adjusted current ratio = Adjusted current assets ÷ Current liabilities
= 8,684,900 ÷ 2,416,700 = 3.59

Liquidity ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by current liabilities. Air Products & Chemicals Inc. adjusted current ratio improved from 2018 to 2019 and from 2019 to 2020.

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: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in thousands)
Adjusted net income attributable to Air Products 1,886,700 1,760,000 1,474,500 3,012,000 609,300 1,273,300
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% 16.51% 36.79% 6.40% 12.87%

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: After Conversion from LIFO to FIFO
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 25,168,500 18,942,800 19,178,300 18,490,500 18,134,300 17,538,900
Activity Ratio
Adjusted total asset turnover2 0.35 0.47 0.47 0.44 0.53 0.56

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 ÷ 25,168,500 = 0.35

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

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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: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in thousands)
Adjusted total assets 25,168,500 18,942,800 19,178,300 18,490,500 18,134,300 17,538,900
Adjusted total Air Products shareholders’ equity 12,079,800 11,053,600 10,857,500 10,109,500 7,158,600 7,349,800
Solvency Ratio
Adjusted financial leverage2 2.08 1.71 1.77 1.83 2.53 2.39

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
= 25,168,500 ÷ 12,079,800 = 2.08

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: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in thousands)
Adjusted net income attributable to Air Products 1,886,700 1,760,000 1,474,500 3,012,000 609,300 1,273,300
Adjusted total Air Products shareholders’ equity 12,079,800 11,053,600 10,857,500 10,109,500 7,158,600 7,349,800
Profitability Ratio
Adjusted ROE2 15.62% 15.92% 13.58% 29.79% 8.51% 17.32%

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 ÷ 12,079,800 = 15.62%

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: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in thousands)
Adjusted net income attributable to Air Products 1,886,700 1,760,000 1,474,500 3,012,000 609,300 1,273,300
Adjusted total assets 25,168,500 18,942,800 19,178,300 18,490,500 18,134,300 17,538,900
Profitability Ratio
Adjusted ROA2 7.50% 9.29% 7.69% 16.29% 3.36% 7.26%

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 ÷ 25,168,500 = 7.50%

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.