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

Air Products & Chemicals Inc. (NYSE:APD)

Analysis of Profitability Ratios

Beginner level


Profitability Ratios (Summary)

Air Products & Chemicals Inc., profitability ratios

Microsoft Excel LibreOffice Calc
Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015 Sep 30, 2014
Return on Sales
Gross profit margin 32.68% 30.69% 29.73% 32.78% 29.82% 26.86%
Operating profit margin 24.04% 22.01% 17.44% 22.11% 17.17% 12.72%
Net profit margin 19.73% 16.77% 36.65% 6.63% 12.91% 9.50%
Return on Investment
Return on equity (ROE) 15.92% 13.80% 29.75% 8.91% 17.63% 13.46%
Return on assets (ROA) 9.29% 7.81% 16.25% 3.50% 7.33% 5.58%

Based on: 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), 10-K (filing date: 2014-11-24).

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. Air Products & Chemicals Inc.’s gross profit margin ratio improved from 2017 to 2018 and from 2018 to 2019.
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Air Products & Chemicals Inc.’s operating profit margin ratio improved from 2017 to 2018 and from 2018 to 2019.
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Air Products & Chemicals Inc.’s net profit margin ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. Air Products & Chemicals Inc.’s ROE deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.
ROA A profitability ratio calculated as net income divided by total assets. Air Products & Chemicals Inc.’s ROA deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.

Gross Profit Margin

Air Products & Chemicals Inc., gross profit margin calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015 Sep 30, 2014
Selected Financial Data (US$ in thousands)
Gross profit 2,914,400  2,740,700  2,434,200  3,121,700  2,950,800  2,804,400 
Sales 8,918,900  8,930,200  8,187,600  9,524,400  9,894,900  10,439,000 
Profitability Ratio
Gross profit margin1 32.68% 30.69% 29.73% 32.78% 29.82% 26.86%
Benchmarks
Gross Profit Margin, Competitors2
Ecolab Inc. 41.48% 41.19% 46.49% 47.55% 46.67%
Linde plc 41.04% 39.03% 43.56% 44.37% 44.69%

Based on: 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), 10-K (filing date: 2014-11-24).

1 2019 Calculation
Gross profit margin = 100 × Gross profit ÷ Sales
= 100 × 2,914,400 ÷ 8,918,900 = 32.68%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. Air Products & Chemicals Inc.’s gross profit margin ratio improved from 2017 to 2018 and from 2018 to 2019.

Operating Profit Margin

Air Products & Chemicals Inc., operating profit margin calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015 Sep 30, 2014
Selected Financial Data (US$ in thousands)
Operating income 2,144,400  1,965,600  1,427,600  2,106,000  1,699,100  1,328,200 
Sales 8,918,900  8,930,200  8,187,600  9,524,400  9,894,900  10,439,000 
Profitability Ratio
Operating profit margin1 24.04% 22.01% 17.44% 22.11% 17.17% 12.72%
Benchmarks
Operating Profit Margin, Competitors2
Ecolab Inc. 13.51% 13.27% 14.60% 14.56% 11.53%
Linde plc 10.39% 35.21% 21.40% 21.25% 21.54%
Operating Profit Margin, Sector
Chemicals 13.62% 23.79% 17.62% 18.85% 16.31%
Operating Profit Margin, Industry
Basic Materials 13.54% 21.75% 17.58% 15.65% 16.08%

Based on: 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), 10-K (filing date: 2014-11-24).

1 2019 Calculation
Operating profit margin = 100 × Operating income ÷ Sales
= 100 × 2,144,400 ÷ 8,918,900 = 24.04%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Air Products & Chemicals Inc.’s operating profit margin ratio improved from 2017 to 2018 and from 2018 to 2019.

Net Profit Margin

Air Products & Chemicals Inc., net profit margin calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015 Sep 30, 2014
Selected Financial Data (US$ in thousands)
Net income attributable to Air Products 1,760,000  1,497,800  3,000,400  631,100  1,277,900  991,700 
Sales 8,918,900  8,930,200  8,187,600  9,524,400  9,894,900  10,439,000 
Profitability Ratio
Net profit margin1 19.73% 16.77% 36.65% 6.63% 12.91% 9.50%
Benchmarks
Net Profit Margin, Competitors2
Ecolab Inc. 10.46% 9.74% 10.90% 9.35% 7.40%
Linde plc 8.09% 29.40% 10.90% 14.24% 14.36%
Net Profit Margin, Sector
Chemicals 10.77% 18.98% 17.20% 10.12% 11.18%
Net Profit Margin, Industry
Basic Materials 13.61% 16.72% 13.86% 6.85% 9.65%

Based on: 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), 10-K (filing date: 2014-11-24).

1 2019 Calculation
Net profit margin = 100 × Net income attributable to Air Products ÷ Sales
= 100 × 1,760,000 ÷ 8,918,900 = 19.73%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Air Products & Chemicals Inc.’s net profit margin ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.

Return on Equity (ROE)

Air Products & Chemicals Inc., ROE calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015 Sep 30, 2014
Selected Financial Data (US$ in thousands)
Net income attributable to Air Products 1,760,000  1,497,800  3,000,400  631,100  1,277,900  991,700 
Total Air Products shareholders’ equity 11,053,600  10,857,500  10,086,200  7,079,600  7,249,000  7,365,800 
Profitability Ratio
ROE1 15.92% 13.80% 29.75% 8.91% 17.63% 13.46%
Benchmarks
ROE, Competitors2
Ecolab Inc. 17.95% 17.86% 19.80% 17.82% 14.50%
Linde plc 4.66% 8.49% 20.72% 29.87% 35.25%
ROE, Sector
Chemicals 8.14% 10.37% 24.26% 17.69% 20.63%
ROE, Industry
Basic Materials 9.32% 9.45% 16.48% 9.20% 13.54%

Based on: 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), 10-K (filing date: 2014-11-24).

1 2019 Calculation
ROE = 100 × Net income attributable to Air Products ÷ Total Air Products shareholders’ equity
= 100 × 1,760,000 ÷ 11,053,600 = 15.92%

2 Click competitor name to see calculations.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. Air Products & Chemicals Inc.’s ROE deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.

Return on Assets (ROA)

Air Products & Chemicals Inc., ROA calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015 Sep 30, 2014
Selected Financial Data (US$ in thousands)
Net income attributable to Air Products 1,760,000  1,497,800  3,000,400  631,100  1,277,900  991,700 
Total assets 18,942,800  19,178,300  18,467,200  18,055,300  17,438,100  17,779,100 
Profitability Ratio
ROA1 9.29% 7.81% 16.25% 3.50% 7.33% 5.58%
Benchmarks
ROA, Competitors2
Ecolab Inc. 7.47% 7.12% 7.56% 6.71% 5.38%
Linde plc 2.64% 4.69% 6.10% 7.76% 8.44%
ROA, Sector
Chemicals 4.43% 5.51% 9.78% 6.03% 7.04%
ROA, Industry
Basic Materials 5.05% 4.99% 7.12% 3.56% 5.09%

Based on: 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), 10-K (filing date: 2014-11-24).

1 2019 Calculation
ROA = 100 × Net income attributable to Air Products ÷ Total assets
= 100 × 1,760,000 ÷ 18,942,800 = 9.29%

2 Click competitor name to see calculations.

Profitability ratio Description The company
ROA A profitability ratio calculated as net income divided by total assets. Air Products & Chemicals Inc.’s ROA deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.