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 data reveals significant developments in the company’s capital structure over the analyzed period. Total debt exhibited a gradual increase from 2005 through 2014, rising from approximately 2.5 billion US dollars to a peak near 6.3 billion US dollars in 2013. After 2014, total debt fluctuated with a general downward trend reaching a low around 3.3 billion in 2019. However, in 2020, there was a sharp reversal with debt surging to nearly 7.9 billion US dollars, the highest level in the span studied.
Shareholders’ equity displayed steady growth overall. Starting at about 4.6 billion US dollars in 2005, equity increased persistently, reaching approximately 11.1 billion by 2019 and further rising to nearly 12.1 billion US dollars in 2020. This persistent increase in equity suggests ongoing wealth accumulation and capital retention within the company across the years.
The debt to equity ratio reflects the interplay between debt and equity financing. It moved upward from 0.55 in 2005 to a peak of 0.94 in 2009, indicating a rising reliance on debt during that period. Between 2010 and 2015, the ratio mostly ranged from 0.74 to 0.89, showing moderate leverage. From 2016 onwards, the ratio sharply decreased, reaching a low of 0.30 in 2019, signaling a move toward lower financial leverage and possibly greater financial stability. However, in 2020 this ratio increased again to 0.65, in line with the notable increase in total debt, reflecting a renewed incorporation of leverage.
Overall, the trends suggest a company that initially expanded its leverage until 2009, then gradually deleveraged with increasing equity, before taking on significantly higher debt in 2020. The growth in shareholders’ equity coupled with fluctuating debt levels indicates strategic adjustments in capital structure responding to different financial or market conditions during the period.
- Total Debt
- Increased steadily from 2005 to 2013, declined thereafter until 2019, then surged sharply in 2020.
- Shareholders' Equity
- Displayed consistent growth across the entire period, more than doubling from 2005 through 2020.
- Debt to Equity Ratio
- Rose until 2009, stabilized around moderate levels through 2015, then declined significantly to a low in 2019 before rising notably again in 2020.
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).