Stock Analysis on Net
Stock Analysis on Net
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Air Products & Chemicals Inc. (NYSE:APD)

Adjusted Financial Ratios

Advanced level

Adjusted Financial Ratios (Summary)

Air Products & Chemicals Inc., adjusted financial ratios

Microsoft Excel LibreOffice Calc
Sep 30, 2020 Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015
Activity Ratio
Total Asset Turnover
Reported 0.35 0.47 0.47 0.44 0.53 0.57
Adjusted 0.35 0.47 0.46 0.44 0.52 0.56
Liquidity Ratio
Current Ratio
Reported 3.59 2.54 2.17 2.36 1.31 0.80
Adjusted 3.60 2.56 2.18 2.39 1.35 0.80
Solvency Ratios
Debt to Equity
Reported 0.65 0.30 0.35 0.39 0.88 0.81
Adjusted 0.62 0.30 0.34 0.38 0.81 0.75
Debt to Capital
Reported 0.40 0.23 0.26 0.28 0.47 0.45
Adjusted 0.38 0.23 0.25 0.28 0.45 0.43
Financial Leverage
Reported 2.08 1.71 1.77 1.83 2.55 2.41
Adjusted 1.88 1.58 1.63 1.70 2.30 2.14
Profitability Ratios
Net Profit Margin
Reported 21.30% 19.73% 16.77% 36.65% 6.63% 12.91%
Adjusted 26.29% 13.86% 15.97% 20.95% 13.70% 4.46%
Return on Equity (ROE)
Reported 15.62% 15.92% 13.80% 29.75% 8.91% 17.63%
Adjusted 17.48% 10.19% 12.02% 15.74% 16.51% 5.33%
Return on Assets (ROA)
Reported 7.50% 9.29% 7.81% 16.25% 3.50% 7.33%
Adjusted 9.28% 6.46% 7.39% 9.26% 7.19% 2.49%

Based on: 10-K (filing date: 2020-11-19), 10-K (filing date: 2019-11-26), 10-K (filing date: 2018-11-20), 10-K (filing date: 2017-11-16), 10-K (filing date: 2016-11-21), 10-K (filing date: 2015-11-24).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Air Products & Chemicals Inc.’s adjusted total asset turnover ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Air Products & Chemicals Inc.’s adjusted current ratio improved from 2018 to 2019 and from 2019 to 2020.
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. Air Products & Chemicals Inc.’s adjusted debt-to-equity ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Air Products & Chemicals Inc.’s adjusted debt-to-capital ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.
Air Products & Chemicals Inc.’s adjusted financial leverage ratio decreased from 2018 to 2019 but then increased from 2019 to 2020 exceeding 2018 level.
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Air Products & Chemicals Inc.’s adjusted net profit margin ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. Air Products & Chemicals Inc.’s adjusted ROE deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Air Products & Chemicals Inc.’s adjusted ROA deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level.

Air Products & Chemicals Inc., Financial Ratios: Reported vs. Adjusted


Adjusted Total Asset Turnover

Microsoft Excel LibreOffice Calc
Sep 30, 2020 Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015
Reported
Selected Financial Data (US$ in thousands)
Sales 8,856,300  8,918,900  8,930,200  8,187,600  9,524,400  9,894,900 
Total assets 25,168,500  18,942,800  19,178,300  18,467,200  18,055,300  17,438,100 
Activity Ratio
Total asset turnover1 0.35 0.47 0.47 0.44 0.53 0.57
Adjusted
Selected Financial Data (US$ in thousands)
Sales 8,856,300  8,918,900  8,930,200  8,187,600  9,524,400  9,894,900 
Adjusted total assets2 25,077,300  19,140,439  19,292,616  18,534,595  18,158,876  17,713,361 
Activity Ratio
Adjusted total asset turnover3 0.35 0.47 0.46 0.44 0.52 0.56

Based on: 10-K (filing date: 2020-11-19), 10-K (filing date: 2019-11-26), 10-K (filing date: 2018-11-20), 10-K (filing date: 2017-11-16), 10-K (filing date: 2016-11-21), 10-K (filing date: 2015-11-24).

1 2020 Calculation
Total asset turnover = Sales ÷ Total assets
= 8,856,300 ÷ 25,168,500 = 0.35

2 Adjusted total assets. See details »

3 2020 Calculation
Adjusted total asset turnover = Sales ÷ Adjusted total assets
= 8,856,300 ÷ 25,077,300 = 0.35

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Air Products & Chemicals Inc.’s adjusted total asset turnover ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

Adjusted Current Ratio

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Sep 30, 2020 Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015
Reported
Selected Financial Data (US$ in thousands)
Current assets 8,684,900  4,618,300  5,082,200  5,876,700  4,317,300  2,910,800 
Current liabilities 2,416,700  1,820,900  2,338,300  2,489,000  3,283,300  3,648,100 
Liquidity Ratio
Current ratio1 3.59 2.54 2.17 2.36 1.31 0.80
Adjusted
Selected Financial Data (US$ in thousands)
Adjusted current assets2 8,708,800  4,667,100  5,106,200  5,945,800  4,419,100  2,920,700 
Adjusted current liabilities3 2,416,700  1,820,900  2,338,300  2,489,000  3,283,300  3,644,500 
Liquidity Ratio
Adjusted current ratio4 3.60 2.56 2.18 2.39 1.35 0.80

Based on: 10-K (filing date: 2020-11-19), 10-K (filing date: 2019-11-26), 10-K (filing date: 2018-11-20), 10-K (filing date: 2017-11-16), 10-K (filing date: 2016-11-21), 10-K (filing date: 2015-11-24).

1 2020 Calculation
Current ratio = Current assets ÷ Current liabilities
= 8,684,900 ÷ 2,416,700 = 3.59

2 Adjusted current assets. See details »

3 Adjusted current liabilities. See details »

4 2020 Calculation
Adjusted current ratio = Adjusted current assets ÷ Adjusted current liabilities
= 8,708,800 ÷ 2,416,700 = 3.60

Liquidity ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Air Products & Chemicals Inc.’s adjusted current ratio improved from 2018 to 2019 and from 2019 to 2020.

Adjusted Debt to Equity

Microsoft Excel LibreOffice Calc
Sep 30, 2020 Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015
Reported
Selected Financial Data (US$ in thousands)
Total debt 7,907,800  3,326,000  3,812,600  3,962,800  6,225,200  5,879,000 
Total Air Products shareholders’ equity 12,079,800  11,053,600  10,857,500  10,086,200  7,079,600  7,249,000 
Solvency Ratio
Debt to equity1 0.65 0.30 0.35 0.39 0.88 0.81
Adjusted
Selected Financial Data (US$ in thousands)
Adjusted total debt2 8,314,300  3,590,039  4,024,316  4,135,595  6,419,676  6,213,361 
Adjusted total equity3 13,319,200  12,133,500  11,863,900  10,900,000  7,905,900  8,270,600 
Solvency Ratio
Adjusted debt to equity4 0.62 0.30 0.34 0.38 0.81 0.75

Based on: 10-K (filing date: 2020-11-19), 10-K (filing date: 2019-11-26), 10-K (filing date: 2018-11-20), 10-K (filing date: 2017-11-16), 10-K (filing date: 2016-11-21), 10-K (filing date: 2015-11-24).

1 2020 Calculation
Debt to equity = Total debt ÷ Total Air Products shareholders’ equity
= 7,907,800 ÷ 12,079,800 = 0.65

2 Adjusted total debt. See details »

3 Adjusted total equity. See details »

4 2020 Calculation
Adjusted debt to equity = Adjusted total debt ÷ Adjusted total equity
= 8,314,300 ÷ 13,319,200 = 0.62

Solvency ratio Description The company
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. Air Products & Chemicals Inc.’s adjusted debt-to-equity ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

Adjusted Debt to Capital

Microsoft Excel LibreOffice Calc
Sep 30, 2020 Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015
Reported
Selected Financial Data (US$ in thousands)
Total debt 7,907,800  3,326,000  3,812,600  3,962,800  6,225,200  5,879,000 
Total capital 19,987,600  14,379,600  14,670,100  14,049,000  13,304,800  13,128,000 
Solvency Ratio
Debt to capital1 0.40 0.23 0.26 0.28 0.47 0.45
Adjusted
Selected Financial Data (US$ in thousands)
Adjusted total debt2 8,314,300  3,590,039  4,024,316  4,135,595  6,419,676  6,213,361 
Adjusted total capital3 21,633,500  15,723,539  15,888,216  15,035,595  14,325,576  14,483,961 
Solvency Ratio
Adjusted debt to capital4 0.38 0.23 0.25 0.28 0.45 0.43

Based on: 10-K (filing date: 2020-11-19), 10-K (filing date: 2019-11-26), 10-K (filing date: 2018-11-20), 10-K (filing date: 2017-11-16), 10-K (filing date: 2016-11-21), 10-K (filing date: 2015-11-24).

1 2020 Calculation
Debt to capital = Total debt ÷ Total capital
= 7,907,800 ÷ 19,987,600 = 0.40

2 Adjusted total debt. See details »

3 Adjusted total capital. See details »

4 2020 Calculation
Adjusted debt to capital = Adjusted total debt ÷ Adjusted total capital
= 8,314,300 ÷ 21,633,500 = 0.38

Solvency ratio Description The company
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Air Products & Chemicals Inc.’s adjusted debt-to-capital ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

Adjusted Financial Leverage

Microsoft Excel LibreOffice Calc
Sep 30, 2020 Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015
Reported
Selected Financial Data (US$ in thousands)
Total assets 25,168,500  18,942,800  19,178,300  18,467,200  18,055,300  17,438,100 
Total Air Products shareholders’ equity 12,079,800  11,053,600  10,857,500  10,086,200  7,079,600  7,249,000 
Solvency Ratio
Financial leverage1 2.08 1.71 1.77 1.83 2.55 2.41
Adjusted
Selected Financial Data (US$ in thousands)
Adjusted total assets2 25,077,300  19,140,439  19,292,616  18,534,595  18,158,876  17,713,361 
Adjusted total equity3 13,319,200  12,133,500  11,863,900  10,900,000  7,905,900  8,270,600 
Solvency Ratio
Adjusted financial leverage4 1.88 1.58 1.63 1.70 2.30 2.14

Based on: 10-K (filing date: 2020-11-19), 10-K (filing date: 2019-11-26), 10-K (filing date: 2018-11-20), 10-K (filing date: 2017-11-16), 10-K (filing date: 2016-11-21), 10-K (filing date: 2015-11-24).

1 2020 Calculation
Financial leverage = Total assets ÷ Total Air Products shareholders’ equity
= 25,168,500 ÷ 12,079,800 = 2.08

2 Adjusted total assets. See details »

3 Adjusted total equity. See details »

4 2020 Calculation
Adjusted financial leverage = Adjusted total assets ÷ Adjusted total equity
= 25,077,300 ÷ 13,319,200 = 1.88

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.
Air Products & Chemicals Inc.’s adjusted financial leverage ratio decreased from 2018 to 2019 but then increased from 2019 to 2020 exceeding 2018 level.

Adjusted Net Profit Margin

Microsoft Excel LibreOffice Calc
Sep 30, 2020 Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015
Reported
Selected Financial Data (US$ in thousands)
Net income attributable to Air Products 1,886,700  1,760,000  1,497,800  3,000,400  631,100  1,277,900 
Sales 8,856,300  8,918,900  8,930,200  8,187,600  9,524,400  9,894,900 
Profitability Ratio
Net profit margin1 21.30% 19.73% 16.77% 36.65% 6.63% 12.91%
Adjusted
Selected Financial Data (US$ in thousands)
Adjusted net income2 2,327,900  1,236,100  1,426,100  1,715,400  1,305,100  440,900 
Sales 8,856,300  8,918,900  8,930,200  8,187,600  9,524,400  9,894,900 
Profitability Ratio
Adjusted net profit margin3 26.29% 13.86% 15.97% 20.95% 13.70% 4.46%

Based on: 10-K (filing date: 2020-11-19), 10-K (filing date: 2019-11-26), 10-K (filing date: 2018-11-20), 10-K (filing date: 2017-11-16), 10-K (filing date: 2016-11-21), 10-K (filing date: 2015-11-24).

1 2020 Calculation
Net profit margin = 100 × Net income attributable to Air Products ÷ Sales
= 100 × 1,886,700 ÷ 8,856,300 = 21.30%

2 Adjusted net income. See details »

3 2020 Calculation
Adjusted net profit margin = 100 × Adjusted net income ÷ Sales
= 100 × 2,327,900 ÷ 8,856,300 = 26.29%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Air Products & Chemicals Inc.’s adjusted net profit margin ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level.

Adjusted Return on Equity (ROE)

Microsoft Excel LibreOffice Calc
Sep 30, 2020 Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015
Reported
Selected Financial Data (US$ in thousands)
Net income attributable to Air Products 1,886,700  1,760,000  1,497,800  3,000,400  631,100  1,277,900 
Total Air Products shareholders’ equity 12,079,800  11,053,600  10,857,500  10,086,200  7,079,600  7,249,000 
Profitability Ratio
ROE1 15.62% 15.92% 13.80% 29.75% 8.91% 17.63%
Adjusted
Selected Financial Data (US$ in thousands)
Adjusted net income2 2,327,900  1,236,100  1,426,100  1,715,400  1,305,100  440,900 
Adjusted total equity3 13,319,200  12,133,500  11,863,900  10,900,000  7,905,900  8,270,600 
Profitability Ratio
Adjusted ROE4 17.48% 10.19% 12.02% 15.74% 16.51% 5.33%

Based on: 10-K (filing date: 2020-11-19), 10-K (filing date: 2019-11-26), 10-K (filing date: 2018-11-20), 10-K (filing date: 2017-11-16), 10-K (filing date: 2016-11-21), 10-K (filing date: 2015-11-24).

1 2020 Calculation
ROE = 100 × Net income attributable to Air Products ÷ Total Air Products shareholders’ equity
= 100 × 1,886,700 ÷ 12,079,800 = 15.62%

2 Adjusted net income. See details »

3 Adjusted total equity. See details »

4 2020 Calculation
Adjusted ROE = 100 × Adjusted net income ÷ Adjusted total equity
= 100 × 2,327,900 ÷ 13,319,200 = 17.48%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. Air Products & Chemicals Inc.’s adjusted ROE deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level.

Adjusted Return on Assets (ROA)

Microsoft Excel LibreOffice Calc
Sep 30, 2020 Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015
Reported
Selected Financial Data (US$ in thousands)
Net income attributable to Air Products 1,886,700  1,760,000  1,497,800  3,000,400  631,100  1,277,900 
Total assets 25,168,500  18,942,800  19,178,300  18,467,200  18,055,300  17,438,100 
Profitability Ratio
ROA1 7.50% 9.29% 7.81% 16.25% 3.50% 7.33%
Adjusted
Selected Financial Data (US$ in thousands)
Adjusted net income2 2,327,900  1,236,100  1,426,100  1,715,400  1,305,100  440,900 
Adjusted total assets3 25,077,300  19,140,439  19,292,616  18,534,595  18,158,876  17,713,361 
Profitability Ratio
Adjusted ROA4 9.28% 6.46% 7.39% 9.26% 7.19% 2.49%

Based on: 10-K (filing date: 2020-11-19), 10-K (filing date: 2019-11-26), 10-K (filing date: 2018-11-20), 10-K (filing date: 2017-11-16), 10-K (filing date: 2016-11-21), 10-K (filing date: 2015-11-24).

1 2020 Calculation
ROA = 100 × Net income attributable to Air Products ÷ Total assets
= 100 × 1,886,700 ÷ 25,168,500 = 7.50%

2 Adjusted net income. See details »

3 Adjusted total assets. See details »

4 2020 Calculation
Adjusted ROA = 100 × Adjusted net income ÷ Adjusted total assets
= 100 × 2,327,900 ÷ 25,077,300 = 9.28%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Air Products & Chemicals Inc.’s adjusted ROA deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level.