Analysis of Long-term (Investment) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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- Statement of Comprehensive Income
- Common-Size Income Statement
- Analysis of Solvency Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Debt to Equity since 2005
- Total Asset Turnover since 2005
- Price to Earnings (P/E) since 2005
- Price to Book Value (P/BV) since 2005
- Analysis of Debt
- Aggregate Accruals
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Long-term Activity Ratios (Summary)
Air Products & Chemicals Inc., long-term (investment) activity ratios (quarterly data)
Based on: 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-K (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-K (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-K (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-K (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-Q (reporting date: 2016-12-31), 10-K (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-Q (reporting date: 2015-12-31), 10-K (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-Q (reporting date: 2014-12-31).
The data reveals distinct trends in three key turnover ratios over the periods presented, highlighting shifts in asset utilization and equity efficiency.
- Net Fixed Asset Turnover
- Initially, the ratio showed a modest increase from 1.03 to 1.13 in early 2017, indicating improved utilization of net fixed assets. However, after this peak, the turnover ratio entered a gradual decline phase, decreasing to a low point of 0.72 by mid-2020. Following this trough, a slight recovery is observable, with the ratio edging upward to 0.75 by mid-2021. Overall, the trend signals a reduction in the efficiency of fixed asset use over the years, then a stabilization or slight improvement in the most recent quarters.
- Total Asset Turnover
- This ratio experienced a steady decrease from 0.57 in late 2014 and early 2015 to about 0.44 at the end of 2017, indicating diminished efficiency in generating revenue from total assets. It remained relatively flat around 0.46 to 0.47 through 2018 and 2019, before a pronounced drop occurred in 2020, reaching a low of 0.34 to 0.36. A mild rebound is noticed in early 2021 with the ratio moving up to 0.37. This pattern suggests that overall asset utilization declined markedly during the COVID-19 pandemic, with a slight recovery thereafter.
- Equity Turnover
- Equity turnover started at 1.37 and remained above 1.3 through early 2016, reflecting relatively high efficiency in using shareholder equity to generate sales. However, a significant downward trend set in from mid-2016 onward, falling below 1.0 by the end of 2017 and continuing to decline to about 0.70 by 2021. Minor fluctuations occurred, but the overall trajectory shows a substantial decrease in equity efficiency over the period analyzed.
In summary, all three turnover ratios exhibit declining trends over the years, with the steepest drops appearing during the 2020 pandemic period. Limited recovery signs are present in 2021 but do not fully restore earlier levels. This indicates a reduction in the company's efficiency in utilizing fixed assets, total assets, and equity to generate revenue during the timeframe analyzed.
Net Fixed Asset Turnover
Air Products & Chemicals Inc., net fixed asset turnover calculation (quarterly data)
| Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||||||||
| Sales | |||||||||||||||||||||||||||||||||||
| Plant and equipment, net | |||||||||||||||||||||||||||||||||||
| Long-term Activity Ratio | |||||||||||||||||||||||||||||||||||
| Net fixed asset turnover1 | |||||||||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||||||||
| Net Fixed Asset Turnover, Competitors2 | |||||||||||||||||||||||||||||||||||
| Linde plc | |||||||||||||||||||||||||||||||||||
| Sherwin-Williams Co. | |||||||||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-K (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-K (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-K (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-K (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-Q (reporting date: 2016-12-31), 10-K (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-Q (reporting date: 2015-12-31), 10-K (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-Q (reporting date: 2014-12-31).
1 Q3 2021 Calculation
Net fixed asset turnover
= (SalesQ3 2021
+ SalesQ2 2021
+ SalesQ1 2021
+ SalesQ4 2020)
÷ Plant and equipment, net
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Sales Trends
- Sales exhibited fluctuations throughout the period. Initially, there was a general decline from $2,560,800 thousand in December 2014 to $1,882,500 thousand in December 2016. After this trough, sales gradually recovered and showed a consistent upward trend, reaching $2,604,700 thousand by June 2021. Notable dips occurred around late 2016 and early 2020; however, the recovery phase following these dips indicates resilience and possible growth momentum in recent periods.
- Plant and Equipment, Net
- The net value of plant and equipment decreased from approximately $9,607,600 thousand at the start of the period to a low of about $8,030,300 thousand in December 2016. Subsequently, the asset base showed a significant recovery and consistent growth, increasing steadily to $13,035,600 thousand by June 2021. This upward trend suggests capital investment and asset expansion initiatives taken after 2016, with the most robust growth observed from late 2019 onwards.
- Net Fixed Asset Turnover Ratio
- The net fixed asset turnover ratio reflects sales generated per unit of fixed assets and declined over the period. Early figures around 2015 and 2016 were near or slightly above 1.00, indicating efficient utilization of fixed assets to generate sales. However, from 2017 onward, a downward trend is evident, reaching a low point near 0.72–0.75 in 2020 and early 2021. This decline implies that sales growth has not kept pace with the increase in fixed assets, pointing toward reduced asset turnover efficiency or a potential lag between asset investment and corresponding sales increases.
- Overall Observations
- The data reveal a period of contraction in both sales and net plant and equipment during the early years up to late 2016, followed by a phase of investment and growth beginning circa 2017. While the asset base has expanded significantly since then, sales have recovered more moderately, causing a decline in asset turnover efficiency. This pattern may suggest ongoing capital expenditures and capacity expansion that have yet to fully translate into proportional revenue gains. Continued monitoring is advised to assess whether sales momentum aligns with the elevated asset base in subsequent periods.
Total Asset Turnover
Air Products & Chemicals Inc., total asset turnover calculation (quarterly data)
| Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||||||||
| Sales | |||||||||||||||||||||||||||||||||||
| Total assets | |||||||||||||||||||||||||||||||||||
| Long-term Activity Ratio | |||||||||||||||||||||||||||||||||||
| Total asset turnover1 | |||||||||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||||||||
| Total Asset Turnover, Competitors2 | |||||||||||||||||||||||||||||||||||
| Linde plc | |||||||||||||||||||||||||||||||||||
| Sherwin-Williams Co. | |||||||||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-K (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-K (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-K (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-K (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-Q (reporting date: 2016-12-31), 10-K (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-Q (reporting date: 2015-12-31), 10-K (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-Q (reporting date: 2014-12-31).
1 Q3 2021 Calculation
Total asset turnover
= (SalesQ3 2021
+ SalesQ2 2021
+ SalesQ1 2021
+ SalesQ4 2020)
÷ Total assets
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends over the reported periods.
- Sales
- Sales displayed fluctuations throughout the periods. Initially, sales were relatively stable in the range of approximately 2,350,000 to 2,560,000 thousand US dollars from late 2014 through 2016. However, a significant decline occurred by the end of 2016, with sales dropping to around 1,882,500 thousand US dollars. Following this decline, sales progressively recovered, reaching and surpassing previous levels by mid-2021, where sales peaked at approximately 2,604,700 thousand US dollars. Overall, despite the volatility, the trend shows a recovery and growth phase in later periods.
- Total Assets
- Total assets generally trended upward across the periods, with some intermittent decreases. From around 17,235,800 thousand US dollars in late 2014, assets experienced fluctuations but maintained an upward trajectory, reaching a significant rise towards the end of the data period in mid-2021. By June 2021, total assets were reported near 26,252,100 thousand US dollars, indicating an expansion of the company's asset base over time.
- Total Asset Turnover
- The total asset turnover ratio showed a gradual decline over time. Starting in mid-2015 with values around 0.57, it decreased steadily to approximately 0.34 by mid-2020, representing a reduction in how efficiently the company was using its assets to generate sales. There was a slight increase towards the first half of 2021, with the ratio edging up to about 0.37. This downward trend could imply increased asset accumulation or lower efficiency in asset utilization relative to sales generation during the observed intervals.
In summary, the data depicts a period of sales volatility with an eventual recovery and growth, consistent expansion of total assets, and a declining trend in asset utilization efficiency. The increase in assets alongside fluctuating sales and falling turnover ratio might suggest investment in asset-heavy activities or acquisitions that have yet to fully translate into proportionate sales growth.
Equity Turnover
Air Products & Chemicals Inc., equity turnover calculation (quarterly data)
| Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||||||||
| Sales | |||||||||||||||||||||||||||||||||||
| Total Air Products shareholders’ equity | |||||||||||||||||||||||||||||||||||
| Long-term Activity Ratio | |||||||||||||||||||||||||||||||||||
| Equity turnover1 | |||||||||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||||||||
| Equity Turnover, Competitors2 | |||||||||||||||||||||||||||||||||||
| Linde plc | |||||||||||||||||||||||||||||||||||
| Sherwin-Williams Co. | |||||||||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-K (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-K (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-K (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-K (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-Q (reporting date: 2016-12-31), 10-K (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-Q (reporting date: 2015-12-31), 10-K (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-Q (reporting date: 2014-12-31).
1 Q3 2021 Calculation
Equity turnover
= (SalesQ3 2021
+ SalesQ2 2021
+ SalesQ1 2021
+ SalesQ4 2020)
÷ Total Air Products shareholders’ equity
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Sales Trend
- Sales demonstrate a fluctuating pattern over the observed periods. Initially, sales slightly decline from 2,560,800 thousand USD in December 2014 to 2,271,200 thousand USD in March 2016. A temporary increase follows, reaching 2,463,000 thousand USD in September 2016, before a notable decrease to 1,882,500 thousand USD by December 2016. Subsequently, sales recover moderately, peaking at 2,283,200 thousand USD in September 2019. A decline is observed thereafter with sales dropping to 2,065,200 thousand USD in June 2020. The later months show a steady recovery, culminating in 2,604,700 thousand USD in June 2021, indicating resilience and overall growth trend towards the end of the period.
- Total Shareholders’ Equity
- The total shareholders’ equity exhibits gradual expansion with some volatility. Starting at 7,351,500 thousand USD in December 2014, it generally trends upward, reaching a significant increase in December 2016 at 7,161,500 thousand USD, followed by a sharp rise to 10,286,200 thousand USD in September 2017. Thereafter, equity continues to grow steadily, crossing the 12,000,000 thousand USD mark by March 2021 and reaching 13,082,900 thousand USD in June 2021. This pattern indicates a strengthening equity base over time, reflecting potential retained earnings accumulation or capital infusions.
- Equity Turnover Ratio
- The equity turnover ratio reveals a declining efficacy in utilizing shareholders’ equity to generate sales. Initial available data points show a ratio around 1.37 in June 2015, decreasing gradually to approximately 0.75 by June 2021. This downward trend suggests the company is generating fewer sales per unit of equity invested, which may warrant further investigation into asset utilization efficiency or changes in business strategy affecting revenue generation relative to equity.
- Overall Insights
- The financial data depicts a company experiencing fluctuations in sales with eventual recovery and incremental growth in shareholders’ equity across the periods. The declining equity turnover ratio highlights a decreasing intensity in capital usage efficiency to drive sales, despite rising equity levels. The increases in equity combined with the recovery of sales at the end of the period may indicate strengthening financial stability, though potentially accompanied by more conservative or capital-intensive operational approaches.