Return on Equity (ROE)
since 2005
Calculation
Air Products & Chemicals Inc., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net income attributable to Air Products1 | ÷ | Total Air Products shareholders’ equity1 | |
|---|---|---|---|---|---|---|---|
| Sep 30, 2020 | 15.62% | = | 100 | × | 1,886,700) | ÷ | 12,079,800) |
| Sep 30, 2019 | 15.92% | = | 100 | × | 1,760,000) | ÷ | 11,053,600) |
| Sep 30, 2018 | 13.80% | = | 100 | × | 1,497,800) | ÷ | 10,857,500) |
| Sep 30, 2017 | 29.75% | = | 100 | × | 3,000,400) | ÷ | 10,086,200) |
| Sep 30, 2016 | 8.91% | = | 100 | × | 631,100) | ÷ | 7,079,600) |
| Sep 30, 2015 | 17.63% | = | 100 | × | 1,277,900) | ÷ | 7,249,000) |
| Sep 30, 2014 | 13.46% | = | 100 | × | 991,700) | ÷ | 7,365,800) |
| Sep 30, 2013 | 14.12% | = | 100 | × | 994,200) | ÷ | 7,042,100) |
| Sep 30, 2012 | 18.02% | = | 100 | × | 1,167,300) | ÷ | 6,477,200) |
| Sep 30, 2011 | 21.12% | = | 100 | × | 1,224,200) | ÷ | 5,795,800) |
| Sep 30, 2010 | 18.55% | = | 100 | × | 1,029,100) | ÷ | 5,546,900) |
| Sep 30, 2009 | 13.17% | = | 100 | × | 631,300) | ÷ | 4,791,900) |
| Sep 30, 2008 | 18.08% | = | 100 | × | 909,700) | ÷ | 5,030,700) |
| Sep 30, 2007 | 18.84% | = | 100 | × | 1,035,600) | ÷ | 5,495,600) |
| Sep 30, 2006 | 14.69% | = | 100 | × | 723,400) | ÷ | 4,924,000) |
| Sep 30, 2005 | 15.55% | = | 100 | × | 711,700) | ÷ | 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 financial performance from 2005 to 2020 is characterized by a consistent expansion of the capital base and significant fluctuations in annual profitability, leading to a volatile Return on Equity (ROE) profile.
- Shareholders' Equity Growth
- A sustained upward trajectory in total shareholders' equity is observed, increasing from 4.575 billion USD in 2005 to 12.079 billion USD by 2020. This represents a steady accumulation of book value over the 15-year period, with a particularly notable increase occurring between 2016 and 2017, where equity grew from 7.079 billion USD to 10.086 billion USD.
- Net Income Volatility
- Net income attributable to the company exhibits substantial variability. While profits generally hovered around the 1 billion USD mark between 2005 and 2014, significant contractions were recorded in 2009 and 2016. A sharp outlier is observed in 2017, where net income spiked to 3.000 billion USD, the highest value in the analyzed period, before returning to a range between 1.497 billion USD and 1.886 billion USD from 2018 to 2020.
- Return on Equity (ROE) Dynamics
- The ROE trend evolved through three distinct phases. An initial growth phase occurred from 2005 to 2011, with the ratio peaking at 21.12%. This was followed by a contraction phase from 2012 to 2016, during which ROE declined to a period low of 8.91%. The final phase began with a dramatic surge to 29.75% in 2017, directly correlating with the spike in net income, followed by a stabilization period from 2018 to 2020 where the ROE remained relatively consistent between 13.80% and 15.92%.
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Comparison to Competitors
Air Products & Chemicals Inc., ROE, long-term trends, comparison to competitors
| Air Products & Chemicals Inc. | Linde plc | Sherwin-Williams Co. | |
|---|---|---|---|
| Sep 30, 2020 | 15.62% | 5.29% | 56.23% |
| Sep 30, 2019 | 15.92% | 4.66% | 37.38% |
| Sep 30, 2018 | 13.80% | 8.49% | 29.72% |
| Sep 30, 2017 | 29.75% | 20.72% | 48.00% |
| Sep 30, 2016 | 8.91% | 29.87% | 60.30% |
| Sep 30, 2015 | 17.63% | 35.25% | 121.42% |
| Sep 30, 2014 | 13.46% | 30.13% | 86.90% |
| Sep 30, 2013 | 14.12% | 26.55% | 42.41% |
| Sep 30, 2012 | 18.02% | 27.90% | 35.22% |
| Sep 30, 2011 | 21.12% | 30.47% | 29.13% |
| Sep 30, 2010 | 18.55% | 20.63% | 28.74% |
| Sep 30, 2009 | 13.17% | 23.59% | 29.23% |
| Sep 30, 2008 | 18.08% | 30.21% | 29.70% |
| Sep 30, 2007 | 18.84% | 22.89% | 34.47% |
| Sep 30, 2006 | 14.69% | 21.70% | 28.91% |
| Sep 30, 2005 | 15.55% | 18.61% | 26.77% |
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., ROE, long-term trends, comparison to sector (chemicals)
| Air Products & Chemicals Inc. | Chemicals | |
|---|---|---|
| Sep 30, 2020 | 15.62% | 8.90% |
| Sep 30, 2019 | 15.92% | 7.19% |
| Sep 30, 2018 | 13.80% | 9.92% |
| Sep 30, 2017 | 29.75% | 31.09% |
| Sep 30, 2016 | 8.91% | 38.16% |
| Sep 30, 2015 | 17.63% | 49.47% |
| Sep 30, 2014 | 13.46% | 38.67% |
| Sep 30, 2013 | 14.12% | 29.91% |
| Sep 30, 2012 | 18.02% | 29.57% |
| Sep 30, 2011 | 21.12% | 30.18% |
| Sep 30, 2010 | 18.55% | 22.39% |
| Sep 30, 2009 | 13.17% | 24.83% |
| Sep 30, 2008 | 18.08% | 30.06% |
| Sep 30, 2007 | 18.84% | 25.88% |
| Sep 30, 2006 | 14.69% | 23.89% |
| Sep 30, 2005 | 15.55% | 21.11% |
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., ROE, long-term trends, comparison to industry (materials)
| Air Products & Chemicals Inc. | Materials | |
|---|---|---|
| Sep 30, 2020 | 15.62% | 8.40% |
| Sep 30, 2019 | 15.92% | 5.74% |
| Sep 30, 2018 | 13.80% | 12.42% |
| Sep 30, 2017 | 29.75% | 27.34% |
| Sep 30, 2016 | 8.91% | -11.75% |
| Sep 30, 2015 | 17.63% | -73.64% |
| Sep 30, 2014 | 13.46% | 5.03% |
| Sep 30, 2013 | 14.12% | 17.62% |
| Sep 30, 2012 | 18.02% | 21.12% |
| Sep 30, 2011 | 21.12% | 29.47% |
| Sep 30, 2010 | 18.55% | 30.11% |
| Sep 30, 2009 | 13.17% | 27.87% |
| Sep 30, 2008 | 18.08% | -82.36% |
| Sep 30, 2007 | 18.84% | 18.96% |
| Sep 30, 2006 | 14.69% | 33.59% |
| Sep 30, 2005 | 15.55% | 29.22% |
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).