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: Liabilities and Stockholders’ Equity 

Air Products & Chemicals Inc., common-size consolidated balance sheet: liabilities and stockholders’ equity

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Sep 30, 2020 Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015
Trade creditors 2.17 2.79 4.82 3.57 3.74 3.66
Contract liabilities 1.25 1.31 0.82 2.38 2.08 1.12
Dividends payable 1.18 1.35 1.26 1.12 1.04 1.00
Accrued payroll and employee benefits 0.78 0.98 1.05 1.01 1.45 1.42
Obligation for future contribution to an equity affiliate 0.38 0.50 0.00 0.00 0.00 0.00
Current operating lease liabilities 0.28 0.00 0.00 0.00 0.00 0.00
Derivative instruments 0.20 0.48 0.28 0.52 0.41 0.66
Pension and postretirement benefits 0.07 0.14 0.18 0.12 0.20 0.15
Other 0.98 1.09 1.07 1.10 1.10 1.52
Payables and accrued liabilities 7.28% 8.63% 9.48% 9.82% 10.03% 9.53%
Accrued income taxes 0.42 0.46 0.31 0.53 0.81 0.32
Short-term borrowings 0.03 0.31 0.28 0.78 5.18 8.57
Current portion of long-term debt 1.87 0.21 2.12 2.25 2.06 2.50
Current liabilities of discontinued operations 0.00 0.00 0.00 0.09 0.11 0.00
Current liabilities 9.60% 9.61% 12.19% 13.48% 18.18% 20.92%
Long-term debt, excluding current portion 28.34 15.35 15.47 18.42 27.24 22.65
Long-term debt, related party 1.18 1.69 2.00 0.00 0.00 0.00
Pension benefits 2.44 3.44 2.18 3.81 6.57 4.93
Postretirement benefits 0.12 0.19 0.25 0.31 0.41 0.44
Noncurrent operating lease liabilities 1.33 0.00 0.00 0.00 0.00 0.00
Asset retirement obligations 0.94 1.07 0.99 0.78 0.64 0.61
Long-term accrued income taxes related to U.S. tax reform 0.76 1.14 0.96 0.00 0.00 0.00
Contingencies related to uncertain tax positions 0.55 0.65 0.59 0.71 0.53 0.52
Environmental liabilities 0.29 0.31 0.34 0.39 0.39 0.41
Contract liabilities 0.23 0.26 0.30 0.21 0.24 0.77
Derivative instruments 0.14 0.11 0.21 0.19 0.12 0.06
Noncurrent customer liability 0.00 0.62 0.48 0.34 0.00 0.00
Obligation for future contribution to an equity affiliate 0.00 0.00 0.49 0.51 0.52 0.39
Obligations associated with Energy-from-Waste 0.00 0.31 0.33 0.35 0.00 0.00
Other 0.81 0.95 0.90 1.12 0.94 0.79
Other noncurrent liabilities 7.61% 9.04% 8.01% 8.73% 10.38% 8.93%
Deferred income taxes 3.82 4.19 4.04 4.22 4.25 5.18
Noncurrent liabilities 40.96% 30.27% 29.53% 31.37% 41.86% 36.75%
Total liabilities 50.56% 39.88% 41.72% 44.85% 60.05% 57.67%
Common stock, par value $1 per share 0.99 1.32 1.30 1.35 1.38 1.43
Capital in excess of par value 4.35 5.65 5.37 5.42 5.37 5.19
Retained earnings 59.10 74.64 69.92 69.56 58.02 60.67
Accumulated other comprehensive loss -8.50 -12.54 -9.08 -10.00 -13.23 -12.19
Treasury stock, at cost -7.95 -10.71 -10.89 -11.72 -12.33 -13.53
Total Air Products shareholders’ equity 48.00% 58.35% 56.61% 54.62% 39.21% 41.57%
Noncontrolling interests 1.44 1.77 1.66 0.54 0.74 0.76
Total equity 49.44% 60.12% 58.28% 55.15% 39.95% 42.33%
Total liabilities and equity 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).

Trade creditors
The proportion of trade creditors relative to total liabilities and equity exhibited minor fluctuations, peaking at 4.82% in 2018 before declining to 2.17% in 2020, indicating a reduction in short-term payables to suppliers in the latest period.
Contract liabilities
Contract liabilities as a percentage of total liabilities and equity rose from 1.12% in 2015 to a high of 2.38% in 2017 but decreased thereafter, stabilizing around 1.25% in 2020, suggesting some variability in advance payments received or obligations under contracts.
Dividends payable
This liability showed a gradual increase from 1% in 2015 to 1.35% in 2019, followed by a slight reduction to 1.18% in 2020, reflecting relatively consistent dividend obligations with a small recent decline.
Accrued payroll and employee benefits
Accrued payroll and employee-related liabilities declined steadily from 1.42% in 2015 to 0.78% in 2020, indicating a decreasing proportion of these short-term employee-related obligations relative to total capital.
Obligations related to equity affiliates and operating lease liabilities
New liabilities for obligations to equity affiliates appeared in 2019 and decreased towards 2020. Current and noncurrent operating lease liabilities were recorded starting in 2020 at relatively low levels (0.28% and 1.33%, respectively), reflecting the adoption or recognition of such liabilities in that year.
Derivative instruments
Liabilities from derivative instruments generally declined over the period, peaking at 0.66% in 2015 and dropping to 0.2% in 2020, which may point to reduced derivative exposure or risk management adjustments.
Pension and postretirement benefits
The percentages allocated to pension and postretirement benefits decreased notably from 0.15% (pension) and 0.44% (postretirement) in 2015 to 0.07% and 0.12% respectively in 2020, indicating a reduction in these long-term employee benefit liabilities.
Other current liabilities
Other current liabilities dropped from 1.52% in 2015 to 0.98% in 2020, reflecting a modest contraction in miscellaneous short-term obligations.
Payables and accrued liabilities
There was a clear downward trend for payables and accrued liabilities relative to total capital, declining from 9.53% in 2015 to 7.28% in 2020, implying a reduction in accrued expenses and payables.
Accrued income taxes
Accrued income taxes varied, peaking at 0.81% in 2016 and then decreasing, ending at 0.42% in 2020, suggesting some fluctuations in tax liabilities due within one year.
Short-term borrowings and current portion of long-term debt
Short-term borrowings showed a significant drop from 8.57% in 2015 to virtually negligible levels (0.03%) in 2020, indicating reduced reliance on short-term debt. The current portion of long-term debt fluctuated, decreasing sharply in 2019 but rebounding to 1.87% in 2020.
Current liabilities overall
The aggregate current liabilities steadily decreased from 20.92% in 2015 to approximately 9.6% in 2019 and 2020, representing a substantial reduction in short-term obligations as a portion of total funding sources.
Long-term debt and related items
Long-term debt excluding the current portion showed volatility, increasing from 22.65% in 2015 to 27.24% in 2016, then declining to near 15% between 2018 and 2019 before a marked rise to 28.34% in 2020. Related party long-term debt appeared in 2018 and declined through 2020. This suggests active management and restructuring of longer-term borrowing.
Pension and postretirement benefits (noncurrent)
Noncurrent pension benefits declined from a peak of 6.57% in 2016 to 2.44% in 2020, while postretirement benefits also decreased gently, underscoring reduced long-term employee-related liabilities.
Noncurrent operating lease liabilities
This liability emerged in 2020 with a value of 1.33%, aligning with accounting changes or new lease agreements in recent periods.
Asset retirement obligations
Asset retirement obligations rose gradually from 0.61% in 2015 to a peak of 1.07% in 2019, then slightly decreased to 0.94% in 2020, indicating a modest increase in estimated costs for asset decommissioning or environmental restoration.
Tax-related liabilities
Long-term accrued income taxes related to U.S. tax reform were recorded from 2018, peaking at 1.14% in 2019 and falling back to 0.76% in 2020. Contingencies related to uncertain tax positions showed minor growth to 0.71% in 2017, followed by slight decreases, indicating tax risk management effects over time.
Environmental liabilities and other long-term liabilities
Environmental liabilities and other miscellaneous noncurrent liabilities generally decreased over time, showing modest improvements in these obligations or changes in recognition.
Deferred income taxes
Deferred income taxes declined gradually from 5.18% in 2015 to 3.82% in 2020, which may reflect changes in tax basis differences or tax planning strategies.
Total liabilities
Total liabilities as a share of total liabilities and equity declined from 57.67% in 2015 to lows near 39.88% in 2019, but notably increased to 50.56% in 2020, indicating a recent increase in overall indebtedness or obligations.
Equity components
Common stock as a percentage of total capital decreased gradually from 1.43% in 2015 to 0.99% in 2020. Capital in excess of par value showed minor fluctuations, peaking in 2019 at 5.65% before dropping to 4.35% in 2020.
Retained earnings
Retained earnings increased from 60.67% in 2015 to a high near 74.64% in 2019, before falling sharply to 59.1% in 2020, highlighting a significant contraction in accumulated profits relative to total capital in the latest year.
Accumulated other comprehensive loss and treasury stock
Accumulated other comprehensive loss fluctuated, with a notable decrease in negative amounts from -13.23% in 2016 to -8.5% in 2020, indicating an improvement. Treasury stock at cost steadily decreased from -13.53% in 2015 to -7.95% in 2020, reflecting share repurchases or other equity transactions.
Total shareholders’ equity and total equity
Total shareholders’ equity rose substantially from 41.57% in 2015 to 58.35% in 2019 but then declined to 48% in 2020. Total equity followed a similar pattern, peaking at 60.12% in 2019 and falling to 49.44% in 2020, evidencing a contraction in the equity base after a period of growth.
Noncontrolling interests
Noncontrolling interests remained low throughout but increased modestly from 0.54% in 2017 to about 1.77% in 2019 before slightly decreasing again.
Overall observations
The data reveals a trend towards a decreasing share of current liabilities and payables relative to total capital, alongside a reduction in short-term debt. Long-term debt levels exhibited volatility, with a significant increase in 2020. Equity components showed growth until 2019, followed by a decline in 2020, particularly driven by retained earnings. The introduction of operating lease liabilities and evolving tax-related obligations reflect recent accounting and regulatory changes impacting the financial structure. Notably, total liabilities and equity proportions shifted markedly in 2020, indicating changes in the balance sheet composition possibly related to strategic financing decisions or external factors influencing capital structure.