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.

Common-Size Balance Sheet: Assets 

Air Products & Chemicals Inc., common-size consolidated balance sheet: assets

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Sep 30, 2020 Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015
Cash and cash items 20.87 11.87 14.55 17.73 8.32 1.18
Short-term investments 4.39 0.88 0.96 2.19 0.00 0.00
Trade receivables, net 5.07 6.65 6.29 6.36 7.97 8.06
Inventories 1.61 2.05 2.07 1.82 3.43 3.77
Prepaid expenses 0.65 0.41 0.68 1.04 0.55 0.39
Contract assets 0.22 0.34 0.00 0.00 0.00 0.00
Contract fulfillment costs 0.44 0.34 0.00 0.00 0.00 0.00
Deferred tax assets 0.00 0.00 0.00 0.00 0.00 0.67
Derivative instruments 0.39 0.75 0.32 0.51 0.95 0.42
Current lease receivables 0.34 0.48 0.48 0.51 0.49 0.48
Contracts in progress, less progress billings 0.00 0.00 0.40 0.46 0.45 0.64
Prepaid inventory 0.00 0.00 0.00 0.00 0.51 0.00
Other 0.53 0.61 0.74 1.17 1.13 1.08
Other receivables and current assets 1.92% 2.52% 1.95% 2.64% 3.53% 3.29%
Current assets of discontinued operations 0.00 0.00 0.00 0.06 0.11 0.00
Current assets 34.51% 24.38% 26.50% 31.82% 23.91% 16.69%
Investment in net assets of and advances to equity affiliates 5.69 6.74 6.66 6.97 7.13 7.26
Plant and equipment, net 47.54 54.57 51.74 45.70 49.03 55.26
Goodwill, net 3.54 4.21 4.11 3.91 6.37 6.49
Intangible assets, net 1.73 2.21 2.29 1.99 2.70 2.91
Noncurrent lease receivables 3.24 4.70 5.28 6.13 6.77 7.74
Operating lease right-of-use assets 1.50 0.00 0.00 0.00 0.00 0.00
Deferred tax assets 0.46 0.61 0.63 0.94 1.07 0.40
Derivative instruments 0.18 0.43 0.44 0.73 1.13 1.41
Noncurrent customer receivable 0.00 0.62 0.48 0.34 0.00 0.00
Prepaid tax 0.08 0.09 0.07 0.03 0.30 0.18
Pension benefits 0.11 0.15 0.69 0.10 0.00 0.00
Long-term deposits on plant and equipment 0.40 0.00 0.00 0.19 0.20 0.23
Other 1.03 1.29 1.10 1.15 1.39 1.43
Other noncurrent assets 3.75% 3.19% 3.41% 3.48% 4.08% 3.64%
Noncurrent assets 65.49% 75.62% 73.50% 68.18% 76.09% 83.31%
Total assets 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

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).

Cash and Liquidity Position
The proportion of cash and cash items relative to total assets exhibited a marked increase over the period, rising from 1.18% in 2015 to a peak of 20.87% in 2020. This indicates a significant enhancement in liquidity, especially notable in 2020. Short-term investments, initially absent in the early years, displayed intermittent presence starting in 2017, culminating in a rise to 4.39% in 2020, further supporting liquidity improvements.
Receivables and Inventory Trends
Trade receivables as a percentage of total assets demonstrated a gradual decline from 8.06% in 2015 to 5.07% in 2020, suggesting more efficient receivables management or changes in sales credit policies. Inventories similarly decreased from 3.77% to 1.61% over the same interval, which may imply enhanced inventory turnover or adjustment in inventory holding strategies. Prepaid expenses showed minor fluctuations without a clear trend, generally remaining below 1% of total assets.
Current Asset Composition
Current assets as a share of total assets rose sharply from 16.69% in 2015 to 31.82% in 2017, followed by fluctuating decreases and increases, ending at 34.51% in 2020. This overall upward trend, driven by increases in cash and short-term investments, suggests a shift towards a more liquid current asset base.
Noncurrent Asset Composition
Noncurrent assets as a percentage of total assets decreased notably from 83.31% in 2015 to 65.49% in 2020, indicating a relative reduction in long-term asset holdings. Plant and equipment, net, while the largest component of noncurrent assets, declined from 55.26% to 47.54%. Goodwill and intangible assets both showed downward trends, suggesting possible asset write-downs or impairment. Noncurrent lease receivables decreased significantly from 7.74% to 3.24%, indicating reduced long-term receivables or lease-related assets. Meanwhile, the emergence of operating lease right-of-use assets at 1.5% in 2020 represents adaptation to new lease accounting standards.
Other Asset Items
Investments in equity affiliates slightly decreased from 7.26% to 5.69%. Deferred tax assets fluctuated, with current components decreasing from 0.67% to none reported after 2015, while noncurrent deferred tax assets diminished from 0.4% to 0.46%, suggesting changing tax positions or asset recognition. Derivative instruments as a percentage of total assets decreased both in current and noncurrent categories, indicating reduced derivative positions or lower market valuations. Pension benefits were negligible but appeared briefly between 2017 and 2020 at low levels. Other assets both current and noncurrent showed minor declines, maintaining small shares of total assets.
Summary of Asset Structure
The data reveals a trend towards increased liquidity and current asset allocation, juxtaposed with a relative decline in fixed and long-term assets. This may reflect strategic adjustments focusing on financial flexibility or operational changes. Reductions in intangible assets and lease receivables could indicate asset disposals, impairments, or accounting changes. Overall, the asset base became more liquid and less capital intensive over the six-year period.