Total Asset Turnover
since 2005
Calculation
Air Products & Chemicals Inc., total asset turnover, long-term trends, calculation
| Total asset turnover | = | Sales1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|
| Sep 30, 2020 | 0.35 | = | 8,856,300) | ÷ | 25,168,500) |
| Sep 30, 2019 | 0.47 | = | 8,918,900) | ÷ | 18,942,800) |
| Sep 30, 2018 | 0.47 | = | 8,930,200) | ÷ | 19,178,300) |
| Sep 30, 2017 | 0.44 | = | 8,187,600) | ÷ | 18,467,200) |
| Sep 30, 2016 | 0.53 | = | 9,524,400) | ÷ | 18,055,300) |
| Sep 30, 2015 | 0.57 | = | 9,894,900) | ÷ | 17,438,100) |
| Sep 30, 2014 | 0.59 | = | 10,439,000) | ÷ | 17,779,100) |
| Sep 30, 2013 | 0.57 | = | 10,180,400) | ÷ | 17,850,100) |
| Sep 30, 2012 | 0.57 | = | 9,611,700) | ÷ | 16,941,800) |
| Sep 30, 2011 | 0.71 | = | 10,082,000) | ÷ | 14,290,700) |
| Sep 30, 2010 | 0.67 | = | 9,026,000) | ÷ | 13,505,900) |
| Sep 30, 2009 | 0.63 | = | 8,256,200) | ÷ | 13,029,100) |
| Sep 30, 2008 | 0.83 | = | 10,414,500) | ÷ | 12,571,300) |
| Sep 30, 2007 | 0.79 | = | 10,037,800) | ÷ | 12,659,500) |
| Sep 30, 2006 | 0.79 | = | 8,850,400) | ÷ | 11,180,700) |
| Sep 30, 2005 | 0.78 | = | 8,143,500) | ÷ | 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
Between 2005 and 2020, asset utilization efficiency experienced a significant long-term decline. While sales remained relatively stagnant over the fifteen-year period, the total asset base expanded substantially, leading to a steady compression of the total asset turnover ratio.
- Sales Performance
- Revenue exhibited a period of growth between 2005 and 2008, rising from 8.14 billion to 10.41 billion. Following a sharp contraction in 2009 to 8.26 billion, sales recovered and peaked again in 2014 at 10.44 billion. However, the final six years of the period showed a gradual downward trend, ending at 8.86 billion in 2020.
- Asset Base Expansion
- Total assets demonstrated a consistent upward trajectory, growing from 10.41 billion in 2005 to 25.17 billion in 2020. This represents a more than two-fold increase in the company's asset base. The most significant acceleration in asset growth occurred between 2018 and 2020, where assets increased from 19.18 billion to 25.17 billion.
- Total Asset Turnover Analysis
- The asset turnover ratio, which measures the ability to generate sales from assets, declined from 0.78 in 2005 to 0.35 in 2020. The ratio remained relatively stable between 0.78 and 0.83 from 2005 to 2008, but entered a period of volatility and general decline thereafter. A notable drop occurred in 2009 (0.63) corresponding with the decline in sales, and a persistent downward trend was observed from 2011 (0.71) through 2020 (0.35).
The diverging paths of increasing total assets and fluctuating or declining sales indicate a diminishing return on asset investment. The sharp drop in the turnover ratio to 0.35 by 2020 suggests that the asset growth has outpaced revenue generation, resulting in lower operational efficiency regarding asset deployment.
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Comparison to Competitors
Air Products & Chemicals Inc., total asset turnover, long-term trends, comparison to competitors
| Air Products & Chemicals Inc. | Linde plc | Sherwin-Williams Co. | |
|---|---|---|---|
| Sep 30, 2020 | 0.35 | 0.31 | 0.90 |
| Sep 30, 2019 | 0.47 | 0.33 | 0.87 |
| Sep 30, 2018 | 0.47 | 0.16 | 0.92 |
| Sep 30, 2017 | 0.44 | 0.56 | 0.75 |
| Sep 30, 2016 | 0.53 | 0.54 | 1.76 |
| Sep 30, 2015 | 0.57 | 0.59 | 1.96 |
| Sep 30, 2014 | 0.59 | 0.62 | 1.95 |
| Sep 30, 2013 | 0.57 | 0.59 | 1.60 |
| Sep 30, 2012 | 0.57 | 0.62 | 1.53 |
| Sep 30, 2011 | 0.71 | 0.69 | 1.68 |
| Sep 30, 2010 | 0.67 | 0.66 | 1.50 |
| Sep 30, 2009 | 0.63 | 0.63 | 1.64 |
| Sep 30, 2008 | 0.83 | 0.83 | 1.81 |
| Sep 30, 2007 | 0.79 | 0.70 | 1.65 |
| Sep 30, 2006 | 0.79 | 0.75 | 1.56 |
| Sep 30, 2005 | 0.78 | 0.73 | 1.65 |
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., total asset turnover, long-term trends, comparison to sector (chemicals)
| Air Products & Chemicals Inc. | Chemicals | |
|---|---|---|
| Sep 30, 2020 | 0.35 | 0.42 |
| Sep 30, 2019 | 0.47 | 0.43 |
| Sep 30, 2018 | 0.47 | 0.29 |
| Sep 30, 2017 | 0.44 | 0.65 |
| Sep 30, 2016 | 0.53 | 0.86 |
| Sep 30, 2015 | 0.57 | 0.92 |
| Sep 30, 2014 | 0.59 | 0.92 |
| Sep 30, 2013 | 0.57 | 0.83 |
| Sep 30, 2012 | 0.57 | 0.85 |
| Sep 30, 2011 | 0.71 | 0.93 |
| Sep 30, 2010 | 0.67 | 0.88 |
| Sep 30, 2009 | 0.63 | 0.86 |
| Sep 30, 2008 | 0.83 | 1.07 |
| Sep 30, 2007 | 0.79 | 0.95 |
| Sep 30, 2006 | 0.79 | 1.00 |
| Sep 30, 2005 | 0.78 | 1.00 |
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., total asset turnover, long-term trends, comparison to industry (materials)
| Air Products & Chemicals Inc. | Materials | |
|---|---|---|
| Sep 30, 2020 | 0.35 | 0.40 |
| Sep 30, 2019 | 0.47 | 0.41 |
| Sep 30, 2018 | 0.47 | 0.33 |
| Sep 30, 2017 | 0.44 | 0.55 |
| Sep 30, 2016 | 0.53 | 0.59 |
| Sep 30, 2015 | 0.57 | 0.54 |
| Sep 30, 2014 | 0.59 | 0.53 |
| Sep 30, 2013 | 0.57 | 0.48 |
| Sep 30, 2012 | 0.57 | 0.65 |
| Sep 30, 2011 | 0.71 | 0.76 |
| Sep 30, 2010 | 0.67 | 0.74 |
| Sep 30, 2009 | 0.63 | 0.70 |
| Sep 30, 2008 | 0.83 | 0.90 |
| Sep 30, 2007 | 0.79 | 0.58 |
| Sep 30, 2006 | 0.79 | 1.02 |
| Sep 30, 2005 | 0.78 | 0.93 |
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).