Profitability ratios measure the company’s ability to generate profitable sales from its resources (assets).

Profitability Ratios (Summary)
Gross Profit Margin
Operating Profit Margin
Net Profit Margin
Return on Equity (ROE)
Return on Assets (ROA)

Air Products & Chemicals Inc., profitability ratios

	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.

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

	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.

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

	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.

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

	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.

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

	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.

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

	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.

Air Products & Chemicals Inc. (NYSE:APD)

Analysis of Profitability Ratios

Profitability Ratios (Summary)

Gross Profit Margin

Operating Profit Margin

Net Profit Margin

Return on Equity (ROE)

Return on Assets (ROA)