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 Income Statement 

Air Products & Chemicals Inc., common-size consolidated income statement

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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
Sales 100.00 100.00 100.00 100.00 100.00 100.00
Cost of sales -66.15 -67.00 -69.31 -70.27 -67.22 -70.18
Facility closure 0.00 -0.33 0.00 0.00 0.00 0.00
Gross profit 33.85% 32.68% 30.69% 29.73% 32.78% 29.82%
Selling and administrative -8.76 -8.41 -8.52 -8.74 -8.92 -9.52
Research and development -0.95 -0.82 -0.72 -0.71 -1.39 -1.40
Business separation costs 0.00 0.00 0.00 -0.37 -0.55 -0.08
Cost reduction actions 0.00 -0.29 0.00 -1.85 -0.36 -2.10
Pension settlement loss 0.00 0.00 0.00 -0.13 -0.07 -0.21
Goodwill and intangible asset impairment charge 0.00 0.00 0.00 -1.98 0.00 0.00
Gain on exchange of equity affiliate investments 0.00 0.33 0.00 0.00 0.00 0.18
Company headquarters relocation income 0.38 0.00 0.00 0.00 0.00 0.00
Other income (expense), net 0.74 0.55 0.56 1.48 0.61 0.48
Operating income 25.27% 24.04% 22.01% 17.44% 22.11% 17.17%
Equity affiliates’ income 2.99 2.42 1.96 0.98 1.56 1.56
Interest expense -1.23 -1.54 -1.46 -1.47 -1.21 -1.05
Other non-operating income (expense), net 0.35 0.75 0.06 0.35 0.00 0.00
Loss on extinguishment of debt 0.00 0.00 0.00 0.00 -0.07 -0.17
Income from continuing operations before taxes 27.37% 25.67% 22.56% 17.30% 22.39% 17.52%
Income tax provision -5.40 -5.38 -5.87 -3.19 -6.16 -4.20
Income from continuing operations 21.97% 20.29% 16.69% 14.11% 16.23% 13.32%
Income (loss) from discontinued operations, net of tax -0.16 0.00 0.47 22.79 -9.28 0.00
Net income 21.80% 20.29% 17.17% 36.90% 6.95% 13.32%
Net income attributable to noncontrolling interests -0.50 -0.55 -0.39 -0.25 -0.32 -0.40
Net income attributable to Air Products 21.30% 19.73% 16.77% 36.65% 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).

Sales and Cost Trends
The company's sales maintained a constant baseline of 100% throughout the period analyzed. Cost of sales fluctuated moderately, declining from 70.18% in 2015 to 66.15% in 2020, indicating an improvement in cost efficiency or pricing strategy. A facility closure expense appeared briefly in 2019 at -0.33% of sales, suggesting a one-time operational cost without a prolonged impact.
Gross Profit
Gross profit as a percentage of sales exhibited a positive trend, increasing from 29.82% in 2015 to a high of 33.85% in 2020. This upward trajectory aligns with the decrease in the cost of sales, signifying improved profitability at the gross margin level over the years.
Operating Expenses
Selling and administrative expenses decreased slightly from -9.52% in 2015 to a low of -8.41% in 2019 before rising marginally to -8.76% in 2020. Research and development costs remained relatively stable but low, fluctuating around the -0.7% to -1.4% range. Periodic costs related to business separation, cost reduction actions, and pension settlements showed irregular patterns and minimal impact on sales percentages, with some expenses ceasing after certain years.
Impairments and Special Items
A material goodwill and intangible asset impairment charge at -1.98% emerged in 2017, which was a notable isolated event. Gains were reported sporadically, including a gain on exchange of equity affiliate investments in 2015 and 2019 and company headquarters relocation income seen in 2020, contributing to income positively in those years. Other income (expense), net, reflected modest but consistent positive contributions, increasing from 0.48% in 2015 to 0.74% in 2020.
Operating Income and Equity Income
Operating income showed an overall rising trend from 17.17% in 2015 to 25.27% in 2020, reflecting improved operational profitability. Equity affiliates’ income also increased steadily, nearly doubling from 1.56% in 2015 to 2.99% in 2020, reinforcing augmented income sources beyond primary operations.
Interest and Non-Operating Income
Interest expense rose slightly between 2015 and 2019, peaking at -1.54%, before falling to -1.23% in 2020, possibly indicating adjustments in debt levels or financing costs. Other non-operating income became more evident from 2017 onward, albeit with modest fluctuations, contributing marginally to overall income.
Profitability Before and After Taxes
Income from continuing operations before taxes tracked upward from 17.52% to 27.37%, indicating healthier core profitability. Income tax provisions varied notably year to year, peaking at -6.16% in 2016 and generally stabilizing around -5.4% in 2019 and 2020. As a result, income from continuing operations grew from 13.32% in 2015 to 21.97% in 2020.
Discontinued Operations
Discontinued operations exhibited extreme variability, with a significant loss of -9.28% in 2016, a large gain of 22.79% in 2017, and smaller values near zero in other years, reflecting substantial one-off impacts that influenced net income unpredictably across the periods.
Net Income
Net income as a percentage of sales demonstrated volatility, with a sharp dip to 6.95% in 2016 and an extraordinary peak of 36.9% in 2017 influenced by discontinued operations. Excluding such anomalies, net income showed an improving trend from 13.32% in 2015 to 21.8% in 2020, indicating strengthening bottom-line performance. Net income attributable to the company followed a similar pattern.
Noncontrolling Interests
Net income attributable to noncontrolling interests remained a small negative proportion, fluctuating modestly between -0.4% and -0.5%, indicating limited but consistent deductions from consolidated net income attributable to minority owners.