Debt to Equity
since 2005
Calculation
Air Products & Chemicals Inc., debt to equity, long-term trends, calculation
| Debt to equity | = | Total debt1 | ÷ | Total Air Products shareholders’ equity1 | |
|---|---|---|---|---|---|
| Sep 30, 2020 | 0.65 | = | 7,907,800) | ÷ | 12,079,800) |
| Sep 30, 2019 | 0.30 | = | 3,326,000) | ÷ | 11,053,600) |
| Sep 30, 2018 | 0.35 | = | 3,812,600) | ÷ | 10,857,500) |
| Sep 30, 2017 | 0.39 | = | 3,962,800) | ÷ | 10,086,200) |
| Sep 30, 2016 | 0.88 | = | 6,225,200) | ÷ | 7,079,600) |
| Sep 30, 2015 | 0.81 | = | 5,879,000) | ÷ | 7,249,000) |
| Sep 30, 2014 | 0.83 | = | 6,118,500) | ÷ | 7,365,800) |
| Sep 30, 2013 | 0.89 | = | 6,273,600) | ÷ | 7,042,100) |
| Sep 30, 2012 | 0.82 | = | 5,291,900) | ÷ | 6,477,200) |
| Sep 30, 2011 | 0.79 | = | 4,562,200) | ÷ | 5,795,800) |
| Sep 30, 2010 | 0.74 | = | 4,128,300) | ÷ | 5,546,900) |
| Sep 30, 2009 | 0.94 | = | 4,501,500) | ÷ | 4,791,900) |
| Sep 30, 2008 | 0.79 | = | 3,966,800) | ÷ | 5,030,700) |
| Sep 30, 2007 | 0.67 | = | 3,677,200) | ÷ | 5,495,600) |
| Sep 30, 2006 | 0.58 | = | 2,849,800) | ÷ | 4,924,000) |
| Sep 30, 2005 | 0.55 | = | 2,499,900) | ÷ | 4,575,500) |
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), 10-K (reporting date: 2014-09-30), 10-K (reporting date: 2013-09-30), 10-K (reporting date: 2012-09-30), 10-K (reporting date: 2011-09-30), 10-K (reporting date: 2010-09-30), 10-K (reporting date: 2009-09-30), 10-K (reporting date: 2008-09-30), 10-K (reporting date: 2007-09-30), 10-K (reporting date: 2006-09-30), 10-K (reporting date: 2005-09-30).
1 US$ in thousands
The capital structure of the organization between 2005 and 2020 is characterized by three distinct phases: a period of increasing leverage, a significant phase of deleveraging accompanied by equity growth, and a recent sharp increase in total debt.
- Initial Leverage Expansion (2005–2009)
- A consistent upward trend in the debt-to-equity ratio is observed during this period, rising from 0.55 in 2005 to a peak of 0.94 in 2009. This increase was driven by total debt growing from approximately 2.5 billion USD to 4.5 billion USD, while shareholders' equity experienced more volatile growth, notably declining between 2008 and 2009.
- Stabilization and Moderate Leverage (2010–2016)
- The debt-to-equity ratio remained relatively elevated and stable, fluctuating between 0.74 and 0.89. Although total debt reached a high of approximately 6.3 billion USD in 2013, the ratio was moderated by a steady increase in shareholders' equity, which grew from 5.5 billion USD in 2010 to 7.1 billion USD by 2016.
- Strategic Deleveraging and Equity Growth (2017–2019)
- A significant shift in the financial profile occurred starting in 2017, characterized by a sharp reduction in total debt and a substantial increase in shareholders' equity. Total debt fell from 6.2 billion USD in 2016 to 3.3 billion USD by 2019. Concurrently, equity rose to 11.1 billion USD. This resulted in the debt-to-equity ratio dropping to its lowest point in the analyzed period, reaching 0.30 in 2019.
- Recent Capital Structure Shift (2020)
- The trend of deleveraging reversed abruptly in 2020. Total debt increased sharply to 7.9 billion USD, more than doubling the previous year's level. While shareholders' equity continued to grow to 12.1 billion USD, the surge in borrowing led to a corresponding increase in the debt-to-equity ratio, which rose to 0.65.
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Comparison to Competitors
Air Products & Chemicals Inc., debt to equity, long-term trends, comparison to competitors
| Air Products & Chemicals Inc. | Linde plc | Sherwin-Williams Co. | |
|---|---|---|---|
| Sep 30, 2020 | 0.65 | 0.34 | 2.30 |
| Sep 30, 2019 | 0.30 | 0.28 | 2.11 |
| Sep 30, 2018 | 0.35 | 0.30 | 2.50 |
| Sep 30, 2017 | 0.39 | 1.50 | 2.85 |
| Sep 30, 2016 | 0.88 | 1.90 | 1.04 |
| Sep 30, 2015 | 0.81 | 2.10 | 2.26 |
| Sep 30, 2014 | 0.83 | 1.65 | 1.81 |
| Sep 30, 2013 | 0.89 | 1.33 | 0.97 |
| Sep 30, 2012 | 0.82 | 1.21 | 0.95 |
| Sep 30, 2011 | 0.79 | 1.20 | 0.65 |
| Sep 30, 2010 | 0.74 | 0.96 | 0.65 |
| Sep 30, 2009 | 0.94 | 0.95 | 0.55 |
| Sep 30, 2008 | 0.79 | 1.25 | 0.52 |
| Sep 30, 2007 | 0.67 | 0.82 | 0.54 |
| Sep 30, 2006 | 0.58 | 0.70 | 0.44 |
| Sep 30, 2005 | 0.55 | 0.88 | 0.36 |
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), 10-K (reporting date: 2014-09-30), 10-K (reporting date: 2013-09-30), 10-K (reporting date: 2012-09-30), 10-K (reporting date: 2011-09-30), 10-K (reporting date: 2010-09-30), 10-K (reporting date: 2009-09-30), 10-K (reporting date: 2008-09-30), 10-K (reporting date: 2007-09-30), 10-K (reporting date: 2006-09-30), 10-K (reporting date: 2005-09-30).
Comparison to Sector (Chemicals)
Air Products & Chemicals Inc., debt to equity, long-term trends, comparison to sector (chemicals)
| Air Products & Chemicals Inc. | Chemicals | |
|---|---|---|
| Sep 30, 2020 | 0.65 | 0.48 |
| Sep 30, 2019 | 0.30 | 0.43 |
| Sep 30, 2018 | 0.35 | 0.45 |
| Sep 30, 2017 | 0.39 | 2.01 |
| Sep 30, 2016 | 0.88 | 1.66 |
| Sep 30, 2015 | 0.81 | 2.13 |
| Sep 30, 2014 | 0.83 | 1.67 |
| Sep 30, 2013 | 0.89 | 1.26 |
| Sep 30, 2012 | 0.82 | 1.15 |
| Sep 30, 2011 | 0.79 | 1.08 |
| Sep 30, 2010 | 0.74 | 0.89 |
| Sep 30, 2009 | 0.94 | 0.86 |
| Sep 30, 2008 | 0.79 | 1.04 |
| Sep 30, 2007 | 0.67 | 0.74 |
| Sep 30, 2006 | 0.58 | 0.62 |
| Sep 30, 2005 | 0.55 | 0.72 |
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), 10-K (reporting date: 2014-09-30), 10-K (reporting date: 2013-09-30), 10-K (reporting date: 2012-09-30), 10-K (reporting date: 2011-09-30), 10-K (reporting date: 2010-09-30), 10-K (reporting date: 2009-09-30), 10-K (reporting date: 2008-09-30), 10-K (reporting date: 2007-09-30), 10-K (reporting date: 2006-09-30), 10-K (reporting date: 2005-09-30).
Comparison to Industry (Materials)
Air Products & Chemicals Inc., debt to equity, long-term trends, comparison to industry (materials)
| Air Products & Chemicals Inc. | Materials | |
|---|---|---|
| Sep 30, 2020 | 0.65 | 0.56 |
| Sep 30, 2019 | 0.30 | 0.52 |
| Sep 30, 2018 | 0.35 | 0.55 |
| Sep 30, 2017 | 0.39 | 1.85 |
| Sep 30, 2016 | 0.88 | 2.12 |
| Sep 30, 2015 | 0.81 | 2.42 |
| Sep 30, 2014 | 0.83 | 1.21 |
| Sep 30, 2013 | 0.89 | 1.07 |
| Sep 30, 2012 | 0.82 | 0.50 |
| Sep 30, 2011 | 0.79 | 0.49 |
| Sep 30, 2010 | 0.74 | 0.57 |
| Sep 30, 2009 | 0.94 | 0.77 |
| Sep 30, 2008 | 0.79 | 1.16 |
| Sep 30, 2007 | 0.67 | 0.49 |
| Sep 30, 2006 | 0.58 | 0.53 |
| Sep 30, 2005 | 0.55 | 0.71 |
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), 10-K (reporting date: 2014-09-30), 10-K (reporting date: 2013-09-30), 10-K (reporting date: 2012-09-30), 10-K (reporting date: 2011-09-30), 10-K (reporting date: 2010-09-30), 10-K (reporting date: 2009-09-30), 10-K (reporting date: 2008-09-30), 10-K (reporting date: 2007-09-30), 10-K (reporting date: 2006-09-30), 10-K (reporting date: 2005-09-30).