Return on Assets (ROA)
since 2005
Calculation
Air Products & Chemicals Inc., ROA, long-term trends, calculation
| ROA | = | 100 | × | Net income attributable to Air Products1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|---|---|
| Sep 30, 2020 | 7.50% | = | 100 | × | 1,886,700) | ÷ | 25,168,500) |
| Sep 30, 2019 | 9.29% | = | 100 | × | 1,760,000) | ÷ | 18,942,800) |
| Sep 30, 2018 | 7.81% | = | 100 | × | 1,497,800) | ÷ | 19,178,300) |
| Sep 30, 2017 | 16.25% | = | 100 | × | 3,000,400) | ÷ | 18,467,200) |
| Sep 30, 2016 | 3.50% | = | 100 | × | 631,100) | ÷ | 18,055,300) |
| Sep 30, 2015 | 7.33% | = | 100 | × | 1,277,900) | ÷ | 17,438,100) |
| Sep 30, 2014 | 5.58% | = | 100 | × | 991,700) | ÷ | 17,779,100) |
| Sep 30, 2013 | 5.57% | = | 100 | × | 994,200) | ÷ | 17,850,100) |
| Sep 30, 2012 | 6.89% | = | 100 | × | 1,167,300) | ÷ | 16,941,800) |
| Sep 30, 2011 | 8.57% | = | 100 | × | 1,224,200) | ÷ | 14,290,700) |
| Sep 30, 2010 | 7.62% | = | 100 | × | 1,029,100) | ÷ | 13,505,900) |
| Sep 30, 2009 | 4.85% | = | 100 | × | 631,300) | ÷ | 13,029,100) |
| Sep 30, 2008 | 7.24% | = | 100 | × | 909,700) | ÷ | 12,571,300) |
| Sep 30, 2007 | 8.18% | = | 100 | × | 1,035,600) | ÷ | 12,659,500) |
| Sep 30, 2006 | 6.47% | = | 100 | × | 723,400) | ÷ | 11,180,700) |
| Sep 30, 2005 | 6.84% | = | 100 | × | 711,700) | ÷ | 10,408,800) |
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 financial performance from 2005 to 2020 is characterized by a general expansion of the asset base and significant volatility in net income, which directly influenced the Return on Assets (ROA). While the asset base grew consistently, the ROA exhibited cyclical fluctuations, ranging from a low of 3.50% to a peak of 16.25%.
- Asset Base Expansion
- Total assets grew from 10.41 billion USD in 2005 to 18.94 billion USD in 2019, representing a steady long-term increase in the company's resource base. A significant acceleration in asset growth occurred in 2020, where total assets rose sharply to 25.17 billion USD, a nearly 33% increase in a single fiscal year.
- Net Income Volatility
- Net income displayed substantial variance over the 15-year period. Notable troughs occurred in 2009 and 2016, with income dropping to approximately 631 million USD in both years. Conversely, a significant outlier occurred in 2017, where net income surged to 3.00 billion USD, the highest value in the observed period.
- Return on Assets (ROA) Trends
- The ROA remained relatively stable between 6% and 8% from 2005 to 2008 before declining to 4.85% in 2009. A recovery phase followed, peaking at 8.57% in 2011. A period of relative stagnation and decline was observed between 2012 and 2016, reaching a cycle low of 3.50% in 2016.
- Analysis of Exceptional Performance
- The peak ROA of 16.25% in 2017 was driven by the dramatic increase in net income while the asset base remained relatively stable at 18.47 billion USD. In the subsequent years, the ROA normalized, returning to a range of 7.50% to 9.29%.
- Efficiency and Scale Relationship
- In 2020, despite a strong net income of 1.89 billion USD, the ROA decreased to 7.50%. This compression is attributed to the rapid expansion of total assets to 25.17 billion USD, indicating that the increase in asset scale temporarily outpaced the growth in bottom-line profitability.
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Comparison to Competitors
Air Products & Chemicals Inc., ROA, long-term trends, comparison to competitors
| Air Products & Chemicals Inc. | Linde plc | Sherwin-Williams Co. | |
|---|---|---|---|
| Sep 30, 2020 | 7.50% | 2.83% | 9.95% |
| Sep 30, 2019 | 9.29% | 2.64% | 7.52% |
| Sep 30, 2018 | 7.81% | 4.69% | 5.79% |
| Sep 30, 2017 | 16.25% | 6.10% | 8.88% |
| Sep 30, 2016 | 3.50% | 7.76% | 16.77% |
| Sep 30, 2015 | 7.33% | 8.44% | 18.20% |
| Sep 30, 2014 | 5.58% | 8.55% | 15.17% |
| Sep 30, 2013 | 5.57% | 8.66% | 11.79% |
| Sep 30, 2012 | 6.89% | 9.35% | 10.12% |
| Sep 30, 2011 | 8.57% | 10.22% | 8.45% |
| Sep 30, 2010 | 7.62% | 7.82% | 8.95% |
| Sep 30, 2009 | 4.85% | 8.76% | 10.08% |
| Sep 30, 2008 | 7.24% | 9.28% | 10.80% |
| Sep 30, 2007 | 8.18% | 8.80% | 12.68% |
| Sep 30, 2006 | 6.47% | 8.90% | 11.53% |
| Sep 30, 2005 | 6.84% | 6.92% | 10.60% |
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., ROA, long-term trends, comparison to sector (chemicals)
| Air Products & Chemicals Inc. | Chemicals | |
|---|---|---|
| Sep 30, 2020 | 7.50% | 4.17% |
| Sep 30, 2019 | 9.29% | 3.57% |
| Sep 30, 2018 | 7.81% | 4.88% |
| Sep 30, 2017 | 16.25% | 7.47% |
| Sep 30, 2016 | 3.50% | 10.09% |
| Sep 30, 2015 | 7.33% | 10.79% |
| Sep 30, 2014 | 5.58% | 10.04% |
| Sep 30, 2013 | 5.57% | 9.41% |
| Sep 30, 2012 | 6.89% | 9.55% |
| Sep 30, 2011 | 8.57% | 9.79% |
| Sep 30, 2010 | 7.62% | 8.11% |
| Sep 30, 2009 | 4.85% | 9.07% |
| Sep 30, 2008 | 7.24% | 9.66% |
| Sep 30, 2007 | 8.18% | 9.83% |
| Sep 30, 2006 | 6.47% | 9.72% |
| Sep 30, 2005 | 6.84% | 8.00% |
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), 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., ROA, long-term trends, comparison to industry (materials)
| Air Products & Chemicals Inc. | Materials | |
|---|---|---|
| Sep 30, 2020 | 7.50% | 3.40% |
| Sep 30, 2019 | 9.29% | 2.43% |
| Sep 30, 2018 | 7.81% | 5.23% |
| Sep 30, 2017 | 16.25% | 6.22% |
| Sep 30, 2016 | 3.50% | -2.40% |
| Sep 30, 2015 | 7.33% | -13.63% |
| Sep 30, 2014 | 5.58% | 1.48% |
| Sep 30, 2013 | 5.57% | 5.73% |
| Sep 30, 2012 | 6.89% | 8.98% |
| Sep 30, 2011 | 8.57% | 12.44% |
| Sep 30, 2010 | 7.62% | 12.03% |
| Sep 30, 2009 | 4.85% | 9.94% |
| Sep 30, 2008 | 7.24% | -22.98% |
| Sep 30, 2007 | 8.18% | 8.10% |
| Sep 30, 2006 | 6.47% | 14.06% |
| Sep 30, 2005 | 6.84% | 10.70% |
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).