Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Air Products & Chemicals Inc. (NYSE:APD)

Analysis of Solvency Ratios

Beginner level

Solvency ratios also known as long-term debt ratios measure a company’s ability to meet long-term obligations.

Solvency Ratios (Summary)

Air Products & Chemicals Inc., solvency ratios

Microsoft Excel LibreOffice Calc
Sep 30, 2020 Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015
Debt Ratios
Debt to equity 0.65 0.30 0.35 0.39 0.88 0.81
Debt to equity (including operating lease liability) 0.69 0.30 0.35 0.39 0.88 0.81
Debt to capital 0.40 0.23 0.26 0.28 0.47 0.45
Debt to capital (including operating lease liability) 0.41 0.23 0.26 0.28 0.47 0.45
Debt to assets 0.31 0.18 0.20 0.21 0.34 0.34
Debt to assets (including operating lease liability) 0.33 0.18 0.20 0.21 0.34 0.34
Financial leverage 2.08 1.71 1.77 1.83 2.55 2.41
Coverage Ratios
Interest coverage 23.18 17.71 16.44 12.74 19.46 17.75
Fixed charge coverage 13.80 11.22 10.45 8.60 11.86 9.71

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).

Solvency ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. Air Products & Chemicals Inc.’s debt to equity ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.
Debt to equity ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. Air Products & Chemicals Inc.’s debt to equity ratio (including operating lease liability) improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. Air Products & Chemicals Inc.’s debt to capital ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.
Debt to capital ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. Air Products & Chemicals Inc.’s debt to capital ratio (including operating lease liability) improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Air Products & Chemicals Inc.’s debt to assets ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.
Debt to assets ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. Air Products & Chemicals Inc.’s debt to assets ratio (including operating lease liability) improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Air Products & Chemicals Inc.’s financial leverage ratio decreased from 2018 to 2019 but then increased from 2019 to 2020 exceeding 2018 level.
Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Air Products & Chemicals Inc.’s interest coverage ratio improved from 2018 to 2019 and from 2019 to 2020.
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. Air Products & Chemicals Inc.’s fixed charge coverage ratio improved from 2018 to 2019 and from 2019 to 2020.

Debt to Equity

Air Products & Chemicals Inc., debt to equity calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Sep 30, 2020 Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015
Selected Financial Data (US$ in thousands)
Short-term borrowings 7,700  58,200  54,300  144,000  935,800  1,494,300 
Current portion of long-term debt 470,000  40,400  406,600  416,400  371,300  435,600 
Long-term debt, excluding current portion 7,132,900  2,907,300  2,967,400  3,402,400  4,918,100  3,949,100 
Long-term debt, related party 297,200  320,100  384,300  —  —  — 
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
Benchmarks
Debt to Equity, Competitors2
Ecolab Inc. 1.08 0.73 0.88 0.96 0.97 —
Linde plc 0.34 0.28 0.30 1.50 1.90 —
Sherwin-Williams Co. 2.30 2.11 2.50 2.85 1.04 —
Debt to Equity, Sector
Chemicals 0.56 0.44 0.48 1.12 1.17 —

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 Click competitor name to see calculations.

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

Debt to Equity (including Operating Lease Liability)

Air Products & Chemicals Inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Sep 30, 2020 Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015
Selected Financial Data (US$ in thousands)
Short-term borrowings 7,700  58,200  54,300  144,000  935,800  1,494,300 
Current portion of long-term debt 470,000  40,400  406,600  416,400  371,300  435,600 
Long-term debt, excluding current portion 7,132,900  2,907,300  2,967,400  3,402,400  4,918,100  3,949,100 
Long-term debt, related party 297,200  320,100  384,300  —  —  — 
Total debt 7,907,800  3,326,000  3,812,600  3,962,800  6,225,200  5,879,000 
Current operating lease liabilities 70,700  —  —  —  —  — 
Noncurrent operating lease liabilities 335,800  —  —  —  —  — 
Total debt (including operating lease liability) 8,314,300  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 equity (including operating lease liability)1 0.69 0.30 0.35 0.39 0.88 0.81
Benchmarks
Debt to Equity (including Operating Lease Liability), Competitors2
Ecolab Inc. 1.15 0.80 0.88 0.96 0.97 —
Linde plc 0.36 0.30 0.30 1.50 1.90 —
Sherwin-Williams Co. 2.80 2.53 2.50 2.85 1.04 —
Debt to Equity (including Operating Lease Liability), Sector
Chemicals 0.62 0.49 0.48 1.12 1.17 —

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 (including operating lease liability) = Total debt (including operating lease liability) ÷ Total Air Products shareholders’ equity
= 8,314,300 ÷ 12,079,800 = 0.69

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to equity ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. Air Products & Chemicals Inc.’s debt to equity ratio (including operating lease liability) improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

Debt to Capital

Air Products & Chemicals Inc., debt to capital calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Sep 30, 2020 Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015
Selected Financial Data (US$ in thousands)
Short-term borrowings 7,700  58,200  54,300  144,000  935,800  1,494,300 
Current portion of long-term debt 470,000  40,400  406,600  416,400  371,300  435,600 
Long-term debt, excluding current portion 7,132,900  2,907,300  2,967,400  3,402,400  4,918,100  3,949,100 
Long-term debt, related party 297,200  320,100  384,300  —  —  — 
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 
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
Benchmarks
Debt to Capital, Competitors2
Ecolab Inc. 0.52 0.42 0.47 0.49 0.49 —
Linde plc 0.25 0.22 0.23 0.60 0.65 —
Sherwin-Williams Co. 0.70 0.68 0.71 0.74 0.51 —
Debt to Capital, Sector
Chemicals 0.36 0.31 0.32 0.53 0.54 —

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 Click competitor name to see calculations.

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

Debt to Capital (including Operating Lease Liability)

Air Products & Chemicals Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Sep 30, 2020 Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015
Selected Financial Data (US$ in thousands)
Short-term borrowings 7,700  58,200  54,300  144,000  935,800  1,494,300 
Current portion of long-term debt 470,000  40,400  406,600  416,400  371,300  435,600 
Long-term debt, excluding current portion 7,132,900  2,907,300  2,967,400  3,402,400  4,918,100  3,949,100 
Long-term debt, related party 297,200  320,100  384,300  —  —  — 
Total debt 7,907,800  3,326,000  3,812,600  3,962,800  6,225,200  5,879,000 
Current operating lease liabilities 70,700  —  —  —  —  — 
Noncurrent operating lease liabilities 335,800  —  —  —  —  — 
Total debt (including operating lease liability) 8,314,300  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 
Total capital (including operating lease liability) 20,394,100  14,379,600  14,670,100  14,049,000  13,304,800  13,128,000 
Solvency Ratio
Debt to capital (including operating lease liability)1 0.41 0.23 0.26 0.28 0.47 0.45
Benchmarks
Debt to Capital (including Operating Lease Liability), Competitors2
Ecolab Inc. 0.54 0.44 0.47 0.49 0.49 —
Linde plc 0.27 0.23 0.23 0.60 0.65 —
Sherwin-Williams Co. 0.74 0.72 0.71 0.74 0.51 —
Debt to Capital (including Operating Lease Liability), Sector
Chemicals 0.38 0.33 0.32 0.53 0.54 —

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 (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 8,314,300 ÷ 20,394,100 = 0.41

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to capital ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. Air Products & Chemicals Inc.’s debt to capital ratio (including operating lease liability) improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

Debt to Assets

Air Products & Chemicals Inc., debt to assets calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Sep 30, 2020 Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015
Selected Financial Data (US$ in thousands)
Short-term borrowings 7,700  58,200  54,300  144,000  935,800  1,494,300 
Current portion of long-term debt 470,000  40,400  406,600  416,400  371,300  435,600 
Long-term debt, excluding current portion 7,132,900  2,907,300  2,967,400  3,402,400  4,918,100  3,949,100 
Long-term debt, related party 297,200  320,100  384,300  —  —  — 
Total debt 7,907,800  3,326,000  3,812,600  3,962,800  6,225,200  5,879,000 
 
Total assets 25,168,500  18,942,800  19,178,300  18,467,200  18,055,300  17,438,100 
Solvency Ratio
Debt to assets1 0.31 0.18 0.20 0.21 0.34 0.34
Benchmarks
Debt to Assets, Competitors2
Ecolab Inc. 0.37 0.30 0.35 0.37 0.36 —
Linde plc 0.18 0.16 0.16 0.44 0.49 —
Sherwin-Williams Co. 0.41 0.42 0.49 0.53 0.29 —
Debt to Assets, Sector
Chemicals 0.26 0.22 0.23 0.39 0.39 —

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 assets = Total debt ÷ Total assets
= 7,907,800 ÷ 25,168,500 = 0.31

2 Click competitor name to see calculations.

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

Debt to Assets (including Operating Lease Liability)

Air Products & Chemicals Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Sep 30, 2020 Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015
Selected Financial Data (US$ in thousands)
Short-term borrowings 7,700  58,200  54,300  144,000  935,800  1,494,300 
Current portion of long-term debt 470,000  40,400  406,600  416,400  371,300  435,600 
Long-term debt, excluding current portion 7,132,900  2,907,300  2,967,400  3,402,400  4,918,100  3,949,100 
Long-term debt, related party 297,200  320,100  384,300  —  —  — 
Total debt 7,907,800  3,326,000  3,812,600  3,962,800  6,225,200  5,879,000 
Current operating lease liabilities 70,700  —  —  —  —  — 
Noncurrent operating lease liabilities 335,800  —  —  —  —  — 
Total debt (including operating lease liability) 8,314,300  3,326,000  3,812,600  3,962,800  6,225,200  5,879,000 
 
Total assets 25,168,500  18,942,800  19,178,300  18,467,200  18,055,300  17,438,100 
Solvency Ratio
Debt to assets (including operating lease liability)1 0.33 0.18 0.20 0.21 0.34 0.34
Benchmarks
Debt to Assets (including Operating Lease Liability), Competitors2
Ecolab Inc. 0.39 0.33 0.35 0.37 0.36 —
Linde plc 0.19 0.17 0.16 0.44 0.49 —
Sherwin-Williams Co. 0.50 0.51 0.49 0.53 0.29 —
Debt to Assets (including Operating Lease Liability), Sector
Chemicals 0.28 0.24 0.23 0.39 0.39 —

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 assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 8,314,300 ÷ 25,168,500 = 0.33

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to assets ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. Air Products & Chemicals Inc.’s debt to assets ratio (including operating lease liability) improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

Financial Leverage

Air Products & Chemicals Inc., financial leverage calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Sep 30, 2020 Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015
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
Benchmarks
Financial Leverage, Competitors2
Ecolab Inc. 2.94 2.40 2.51 2.62 2.66 —
Linde plc 1.86 1.76 1.81 3.40 3.85 —
Sherwin-Williams Co. 5.65 4.97 5.13 5.41 3.59 —
Financial Leverage, Sector
Chemicals 2.20 2.01 2.05 2.88 2.99 —

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 Click competitor name to see calculations.

Solvency ratio Description The company
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Air Products & Chemicals Inc.’s financial leverage ratio decreased from 2018 to 2019 but then increased from 2019 to 2020 exceeding 2018 level.

Interest Coverage

Air Products & Chemicals Inc., interest coverage calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Sep 30, 2020 Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015
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 
Add: Net income attributable to noncontrolling interest 44,400  49,400  35,100  20,800  30,400  39,700 
Less: Income (loss) from discontinued operations, net of tax (14,300) —  42,200  1,866,000  (884,200) — 
Add: Income tax expense 478,400  480,100  524,300  260,900  586,500  415,900 
Add: Interest expense 109,300  137,000  130,500  120,600  115,500  103,500 
Earnings before interest and tax (EBIT) 2,533,100  2,426,500  2,145,500  1,536,700  2,247,700  1,837,000 
Solvency Ratio
Interest coverage1 23.18 17.71 16.44 12.74 19.46 17.75
Benchmarks
Interest Coverage, Competitors2
Ecolab Inc. 4.81 9.82 8.61 7.43 6.78 —
Linde plc 21.41 21.27 19.10 12.55 11.99 —
Sherwin-Williams Co. 8.40 6.67 4.71 6.80 11.35 —
Interest Coverage, Sector
Chemicals 11.36 11.82 11.12 9.18 11.02 —

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
Interest coverage = EBIT ÷ Interest expense
= 2,533,100 ÷ 109,300 = 23.18

2 Click competitor name to see calculations.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Air Products & Chemicals Inc.’s interest coverage ratio improved from 2018 to 2019 and from 2019 to 2020.

Fixed Charge Coverage

Air Products & Chemicals Inc., fixed charge coverage calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Sep 30, 2020 Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015
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 
Add: Net income attributable to noncontrolling interest 44,400  49,400  35,100  20,800  30,400  39,700 
Less: Income (loss) from discontinued operations, net of tax (14,300) —  42,200  1,866,000  (884,200) — 
Add: Income tax expense 478,400  480,100  524,300  260,900  586,500  415,900 
Add: Interest expense 109,300  137,000  130,500  120,600  115,500  103,500 
Earnings before interest and tax (EBIT) 2,533,100  2,426,500  2,145,500  1,536,700  2,247,700  1,837,000 
Add: Operating lease expense 80,100  87,000  82,700  65,800  80,800  95,500 
Earnings before fixed charges and tax 2,613,200  2,513,500  2,228,200  1,602,500  2,328,500  1,932,500 
 
Interest expense 109,300  137,000  130,500  120,600  115,500  103,500 
Operating lease expense 80,100  87,000  82,700  65,800  80,800  95,500 
Fixed charges 189,400  224,000  213,200  186,400  196,300  199,000 
Solvency Ratio
Fixed charge coverage1 13.80 11.22 10.45 8.60 11.86 9.71
Benchmarks
Fixed Charge Coverage, Competitors2
Ecolab Inc. 3.38 5.37 5.04 4.44 4.26 —
Linde plc 7.79 6.92 11.75 7.71 7.31 —
Sherwin-Williams Co. 4.13 3.47 2.48 3.10 3.79 —
Fixed Charge Coverage, Sector
Chemicals 5.80 5.66 6.01 4.97 5.65 —

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
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 2,613,200 ÷ 189,400 = 13.80

2 Click competitor name to see calculations.

Solvency ratio Description The company
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. Air Products & Chemicals Inc.’s fixed charge coverage ratio improved from 2018 to 2019 and from 2019 to 2020.