Operating Profit Margin
since 2005
Calculation
Air Products & Chemicals Inc., operating profit margin, long-term trends, calculation
| Operating profit margin | = | 100 | × | Operating income1 | ÷ | Sales1 | |
|---|---|---|---|---|---|---|---|
| Sep 30, 2020 | 25.27% | = | 100 | × | 2,237,600) | ÷ | 8,856,300) |
| Sep 30, 2019 | 24.04% | = | 100 | × | 2,144,400) | ÷ | 8,918,900) |
| Sep 30, 2018 | 22.01% | = | 100 | × | 1,965,600) | ÷ | 8,930,200) |
| Sep 30, 2017 | 17.44% | = | 100 | × | 1,427,600) | ÷ | 8,187,600) |
| Sep 30, 2016 | 22.11% | = | 100 | × | 2,106,000) | ÷ | 9,524,400) |
| Sep 30, 2015 | 17.17% | = | 100 | × | 1,699,100) | ÷ | 9,894,900) |
| Sep 30, 2014 | 12.72% | = | 100 | × | 1,328,200) | ÷ | 10,439,000) |
| Sep 30, 2013 | 13.01% | = | 100 | × | 1,324,400) | ÷ | 10,180,400) |
| Sep 30, 2012 | 13.34% | = | 100 | × | 1,282,400) | ÷ | 9,611,700) |
| Sep 30, 2011 | 16.09% | = | 100 | × | 1,622,200) | ÷ | 10,082,000) |
| Sep 30, 2010 | 15.39% | = | 100 | × | 1,389,000) | ÷ | 9,026,000) |
| Sep 30, 2009 | 10.25% | = | 100 | × | 846,300) | ÷ | 8,256,200) |
| Sep 30, 2008 | 14.36% | = | 100 | × | 1,495,800) | ÷ | 10,414,500) |
| Sep 30, 2007 | 14.02% | = | 100 | × | 1,407,700) | ÷ | 10,037,800) |
| Sep 30, 2006 | 11.99% | = | 100 | × | 1,060,900) | ÷ | 8,850,400) |
| Sep 30, 2005 | 12.31% | = | 100 | × | 1,002,500) | ÷ | 8,143,500) |
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 operating profit margin for Air Products & Chemicals Inc. exhibited a long-term upward trajectory from 2005 to 2020, evolving from a period of moderate volatility into a phase of significant margin expansion.
- Initial Volatility and Recovery (2005–2014)
- During this period, the operating profit margin fluctuated between a low of 10.25% in 2009 and a high of 16.09% in 2011. A notable contraction occurred in 2009, where operating income fell to 846.3 million USD, coinciding with a decrease in sales. This was followed by a recovery phase that stabilized the margin between 12.7% and 16.1% for several years.
- Accelerated Margin Expansion (2015–2020)
- A structural shift in profitability is evident starting in 2015, with the operating profit margin climbing from 12.72% in 2014 to a peak of 25.27% in 2020. Although a temporary dip to 17.44% was recorded in 2017, the subsequent years showed consistent growth, with the margin exceeding 22% from 2018 onward.
- Revenue and Income Divergence
- Analysis reveals a decoupling of sales growth and operating profitability. While sales peaked in 2011 at approximately 10.08 billion USD and generally trended downward to 8.86 billion USD by 2020, operating income rose from 1.62 billion USD in 2011 to 2.24 billion USD in 2020. This divergence indicates that the increase in profit margins was driven by operational efficiencies or a shift toward higher-margin business activities rather than volume growth.
The transition from a 12.31% margin in 2005 to 25.27% in 2020 represents a substantial increase in operational efficiency. The data suggests that the company successfully optimized its cost structure, allowing it to generate higher operating income on a smaller revenue base toward the end of the analyzed period.
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Comparison to Competitors
Air Products & Chemicals Inc., operating profit margin, long-term trends, comparison to competitors
| Air Products & Chemicals Inc. | Linde plc | |
|---|---|---|
| Sep 30, 2020 | 25.27% | 12.19% |
| Sep 30, 2019 | 24.04% | 10.39% |
| Sep 30, 2018 | 22.01% | 35.21% |
| Sep 30, 2017 | 17.44% | 21.40% |
| Sep 30, 2016 | 22.11% | 21.25% |
| Sep 30, 2015 | 17.17% | 21.54% |
| Sep 30, 2014 | 12.72% | 21.25% |
| Sep 30, 2013 | 13.01% | 22.01% |
| Sep 30, 2012 | 13.34% | 21.71% |
| Sep 30, 2011 | 16.09% | 21.93% |
| Sep 30, 2010 | 15.39% | 20.58% |
| Sep 30, 2009 | 10.25% | 17.59% |
| Sep 30, 2008 | 14.36% | 17.44% |
| Sep 30, 2007 | 14.02% | 19.00% |
| Sep 30, 2006 | 11.99% | 18.25% |
| Sep 30, 2005 | 12.31% | 16.89% |
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).