Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
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- Balance Sheet: Assets
- Cash Flow Statement
- Analysis of Solvency Ratios
- Analysis of Reportable Segments
- Present Value of Free Cash Flow to Equity (FCFE)
- Selected Financial Data since 2005
- Operating Profit Margin since 2005
- Debt to Equity since 2005
- Price to Operating Profit (P/OP) since 2005
- Analysis of Revenues
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Profitability Ratios (Summary)
Air Products & Chemicals Inc., profitability 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).
- Gross Profit Margin
- The gross profit margin demonstrated an initial upward trend from the end of 2015 through mid-2016, peaking around 32.78% in September 2016. Subsequently, a gradual decline occurred until late 2017, reaching approximately 29.51%. From early 2018 to late 2019, the margin steadily increased again, achieving its highest level of 34.44% in mid-2020. However, after this peak, there was a noticeable decrease through mid-2021, ending near 30.94%. Overall, the margin exhibited cyclic fluctuations with an overall moderate increase until mid-2020, followed by a decline.
- Operating Profit Margin
- The operating profit margin showed a generally positive trajectory from December 2015 through mid-2020. Starting at 18.37%, it increased with some volatility, including a dip to around 17.44% in late 2017, then recovered and rose steadily to a high near 25.86% in mid-2020. After this peak, a decline was observed through mid-2021, ending at approximately 22.7%. This pattern suggests improvements in operating efficiency over most of the period, though with some weakening in the latest quarters.
- Net Profit Margin
- The net profit margin exhibited significant volatility over the period analyzed. Initially, it was around 13.59% at the end of 2015 but dropped sharply in early 2016 to below 7%. There was a remarkable spike in early 2017, surging to over 36%, followed by high but somewhat fluctuating levels in 2017 and 2018, mostly above 16%. From 2019 onwards, the margin stabilized at a range between 18.9% and 21.66%, peaking in early 2020, and then gradually declined towards approximately 20.15% by mid-2021. This indicates episodic factors influencing net profitability, with more stable and relatively strong profitability in recent years.
- Return on Equity (ROE)
- The ROE followed a pattern similar to the net profit margin, showing moderate returns around 17.88% at the end of 2015, decreasing sharply to below 9% in early 2016. It then experienced a steep increase peaking in early 2017 above 34%, after which it declined steadily to approximately 27.95% by late 2017. From 2018 to mid-2021, ROE rose gradually again, reaching mid-teens to around 17.1%, though towards mid-2021 it showed a slight downward trend ending near 15.1%. The large fluctuations indicate periods of enhanced capital efficiency followed by normalization.
- Return on Assets (ROA)
- The ROA mirrored the trends of ROE but at lower levels, starting at about 7.63% in late 2015. There was a decline through early 2016 to around 3.29%, then a pronounced spike reaching near 17.74% by early 2017. A decline followed through late 2017, after which a gradual increase occurred until mid-2020, peaking near 9.97%. The last few quarters saw a slight decline as ROA fell back to around 7.53% by mid-2021. These variations reflect changes in asset utilization efficiency with similar cyclical behavior as equity returns.
Return on Sales
Return on Investment
Gross Profit Margin
Air Products & Chemicals Inc., gross profit margin 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 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||||
| Gross profit | ||||||||||||||||||||||||||||||
| Sales | ||||||||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||||||||
| Gross profit margin1 | ||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Gross Profit Margin, 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).
1 Q3 2021 Calculation
Gross profit margin = 100
× (Gross profitQ3 2021
+ Gross profitQ2 2021
+ Gross profitQ1 2021
+ Gross profitQ4 2020)
÷ (SalesQ3 2021
+ SalesQ2 2021
+ SalesQ1 2021
+ SalesQ4 2020)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
- Gross Profit
- The gross profit exhibits a generally fluctuating pattern over the reported quarters. Initially, it maintains a range close to 750 million US dollars from the end of 2015 through early 2016. A notable decline occurs in the last quarter of 2016, dropping to approximately 564 million US dollars, followed by a gradual recovery through 2017 and 2018. Gross profit peaks again near 792 million US dollars in the third quarter of 2019, before experiencing a slight decline throughout 2020. In early 2021, a modest upward trend is observed, culminating in a gross profit exceeding 800 million US dollars by the second quarter of 2021.
- Sales
- Sales figures reflect a broadly similar trend to gross profit, starting around 2.35 billion US dollars at the end of 2015 and slightly decreasing during 2016 to a low near 1.88 billion US dollars in the final quarter of that year. Subsequently, sales gradually recover, with fluctuations but an overall upward trajectory through 2017 to the end of 2019, peaking around 2.28 billion US dollars. Despite a brief dip during early to mid-2020, sales expand markedly in 2021, reaching about 2.6 billion US dollars by the second quarter, the highest point in the reported period.
- Gross Profit Margin
- The gross profit margin percentage experiences some volatility but indicates an improvement trend over the timeframe. Initially, it ranges from approximately 30.8% to 32.8% through 2015 and 2016, with a temporary dip aligning with the gross profit decline in late 2016. From 2017 onward, the margin mostly increases, achieving a peak above 34% by mid-2020. Following this peak, there is a gradual margin contraction through to the second quarter of 2021, though levels remain above 30%, suggesting sustained efficiency improvements in generating gross profit relative to sales.
- Overall Trends and Insights
- The company experienced a significant dip in gross profit and sales during 2016, likely indicating operational or market challenges during that period. However, recovery trends in both sales and gross profit through subsequent years imply successful strategic or market adjustments. The gross profit margin’s improvement over time denotes enhanced cost management or pricing power, contributing to profitability despite some fluctuations. The recent increase in sales volume alongside a stable margin suggests strengthening market position or demand in early 2021.
Operating Profit Margin
Air Products & Chemicals Inc., operating profit margin 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 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||||
| Operating income | ||||||||||||||||||||||||||||||
| Sales | ||||||||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||||||||
| Operating profit margin1 | ||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Operating Profit Margin, 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).
1 Q3 2021 Calculation
Operating profit margin = 100
× (Operating incomeQ3 2021
+ Operating incomeQ2 2021
+ Operating incomeQ1 2021
+ Operating incomeQ4 2020)
÷ (SalesQ3 2021
+ SalesQ2 2021
+ SalesQ1 2021
+ SalesQ4 2020)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The quarterly financial metrics demonstrate variability in operating income, sales revenue, and operating profit margin over the observed periods. The trends reveal distinct phases of performance fluctuations, indicating shifts in operational efficiency and market conditions.
- Operating Income
- Operating income shows notable fluctuations, starting at approximately 510.6 million USD at the end of 2015, with a gradual increase through mid-2016 peaking around 547 million USD. However, a significant decline occurs by the end of 2016, dropping to approximately 328.1 million USD. Subsequently, operating income recovers irregularly through 2017 and 2018, with quarterly figures oscillating between approximately 250 million and 533.7 million USD. From 2019 onward, operating income demonstrates an upward trajectory, reaching a peak near 603.2 million USD in the third quarter of 2019, before facing moderate declines and some recovery towards mid-2021, consistently remaining above 500 million USD.
- Sales
- Sales revenue follows a somewhat parallel pattern, initially around 2.36 billion USD at the end of 2015, decreasing through early 2016 before recovering and peaking near 2.46 billion USD mid-year. Thereafter, sales experience a pronounced drop by the end of 2016, falling below 1.9 billion USD. The period from 2017 to 2019 shows gradual recovery and relative stabilization in the range of roughly 2.18 to 2.29 billion USD. A secondary dip is observed during early to mid-2020, coinciding with global disruptions, with sales decreasing to about 2.07 billion USD. A strong rebound occurs starting late 2020 through mid-2021, with sales increasing consistently to reach approximately 2.6 billion USD at the latest date.
- Operating Profit Margin
- The operating profit margin exhibits an increasing trend overall, with early values near 18-22% during 2015 and 2016, consistently improving to exceed 22% from late 2018 onwards. Margins peak above 25% in 2019 and 2020, signaling enhanced operational efficiency despite some fluctuations in absolute income and sales. The margin declines slightly in early 2021 but remains robust, above 22% at the latest period.
In summary, the data reflects cyclical fluctuations in operating income and sales, with an overall positive trend in profitability ratios indicating improved operational leverage and margin management. The dip around late 2016 and early 2020 suggests sensitivity to external economic factors, while subsequent recovery periods demonstrate resilience and growth capacity. The sustained high operating profit margins in recent quarters imply effective cost control and value generation despite variable revenue levels.
Net Profit Margin
Air Products & Chemicals Inc., net profit margin 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 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||||
| Net income (loss) attributable to Air Products | ||||||||||||||||||||||||||||||
| Sales | ||||||||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||||||||
| Net profit margin1 | ||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Net Profit Margin, 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).
1 Q3 2021 Calculation
Net profit margin = 100
× (Net income (loss) attributable to Air ProductsQ3 2021
+ Net income (loss) attributable to Air ProductsQ2 2021
+ Net income (loss) attributable to Air ProductsQ1 2021
+ Net income (loss) attributable to Air ProductsQ4 2020)
÷ (SalesQ3 2021
+ SalesQ2 2021
+ SalesQ1 2021
+ SalesQ4 2020)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The financial performance demonstrates notable fluctuations and trends over the analyzed quarters. Net income attributable to the company experienced significant volatility, with a major loss occurring in the first quarter of 2016, followed by a strong recovery and periods of positive profitability thereafter. This recovery appears sustained, with net income gradually increasing and stabilizing in subsequent periods, reaching higher levels toward the latter part of the timeline.
Sales figures reveal a pattern of general growth with intermittent dips. Initially, sales declined slightly from late 2015 through 2016, hitting a low at the end of 2016. However, starting from early 2017, sales trended upward consistently, culminating in peak sales figures by mid-2021. This increase reflects a positive sales momentum despite some minor downturns noted in early 2020, potentially due to external economic impacts.
The net profit margin follows a related trajectory but with pronounced volatility. Margins were relatively low in the early periods, notably affected by the large net loss in early 2016. Following this, margins surged impressively across 2016 and 2017, reaching levels above 30%, indicative of increased profitability or operational efficiency. Post-2017, the margin contracted somewhat but remained relatively stable within the 16% to 21% range, reflecting steady profitability despite fluctuations in sales volume and net income.
Overall, the data indicates recovery from significant losses, followed by a phase of profitability enhancement and stable margins. Sales growth supports this trend, showing resilience with a positive trajectory except for a brief moderation around early 2020. The company’s ability to maintain a net profit margin above 15% for most periods after 2016 suggests effective cost management and pricing strategy aligning with sales performance gains.
- Net Income Trends
- Significant loss in early 2016; recovery and stable growth into 2021.
- Sales Trends
- Initial decline through 2016; steady growth from 2017 onward; minor dip in early 2020; peak sales in mid-2021.
- Net Profit Margin
- Low margins during loss period; spike to over 30% in 2016-2017; stable margins between 16%-21% thereafter.
- Overall Insights
- Strong recovery and profitability improvement post-2016; positive sales momentum supports healthy profit margins; effective cost and operational controls implied.
Return on Equity (ROE)
Air Products & Chemicals Inc., ROE 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 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||||
| Net income (loss) attributable to Air Products | ||||||||||||||||||||||||||||||
| Total Air Products shareholders’ equity | ||||||||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||||||||
| ROE1 | ||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| ROE, 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).
1 Q3 2021 Calculation
ROE = 100
× (Net income (loss) attributable to Air ProductsQ3 2021
+ Net income (loss) attributable to Air ProductsQ2 2021
+ Net income (loss) attributable to Air ProductsQ1 2021
+ Net income (loss) attributable to Air ProductsQ4 2020)
÷ Total Air Products shareholders’ equity
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
The financial analysis of the quarterly data reveals distinct patterns and trends in profitability, equity, and return on equity (ROE) over several years.
- Net Income (Loss) Attributable to Air Products
- The net income figures show significant volatility in the early periods, with a marked loss in the quarter ending March 31, 2016, followed by rapid recovery and positive earnings in subsequent quarters. After this initial turmoil, net income generally trends upward with periodic fluctuations. Notably, there is a strong positive spike around the first quarter of 2017. From 2018 onwards, net income appears relatively stable with a gradual increase overall, culminating in the highest values observed in 2021.
- Total Air Products Shareholders’ Equity
- Shareholders’ equity reflects a steady increase over the analyzed period despite some minor fluctuations. Starting from approximately $7.37 billion at the end of 2015, equity rises substantially, especially between 2016 and 2017, peaking above $10 billion. From 2018 onward, equity consistently advances, reaching over $13 billion by mid-2021, indicating sustained capital growth and retained earnings accumulation.
- Return on Equity (ROE)
- ROE exhibits considerable variability initially, linked to the erratic net income performance. The lowest ROE occurs in early 2016, coinciding with the net income loss. Following that, ROE sharply increases during 2017, achieving levels above 29%, and then gradually normalizes. From 2018 forward, ROE stabilizes in a range approximately between 14% and 17%, indicating consistent profitability relative to shareholders' equity. This suggests that the company has maintained effective use of its equity to generate profits after the initial instability.
Overall, the data indicates that after an early period of earnings volatility and impaired returns, financial performance has improved, characterized by increasing net income, growing equity base, and stabilized return on equity. This reflects enhanced operational efficiency and successful capital management over the subsequent quarters.
Return on Assets (ROA)
Air Products & Chemicals Inc., ROA calculation (quarterly data)
| Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||||
| Net income (loss) attributable to Air Products | ||||||||||||||||||||||||||||||
| Total assets | ||||||||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||||||||
| ROA1 | ||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| ROA, 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).
1 Q3 2021 Calculation
ROA = 100
× (Net income (loss) attributable to Air ProductsQ3 2021
+ Net income (loss) attributable to Air ProductsQ2 2021
+ Net income (loss) attributable to Air ProductsQ1 2021
+ Net income (loss) attributable to Air ProductsQ4 2020)
÷ Total assets
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
- Net Income (Loss) Attributable to Air Products
- The net income exhibits significant volatility over the observed periods. Notably, there is a substantial loss recorded in the quarter ending March 31, 2016, with a negative value of -473,300 thousand US dollars. Following this, net income recovers sharply to positive values, with several quarters exceeding 400,000 thousand US dollars. The highest recorded net income appears in the quarter ending March 31, 2017, at approximately 2,130,000 thousand US dollars, an outlier that notably boosts the overall profitability profile. Post this peak, the net income stabilizes within the range of approximately 150,000 to 533,600 thousand US dollars, with a general trend of moderate growth toward the later quarters, culminating in consistent positive earnings through 2021.
- Total Assets
- Total assets demonstrate a generally upward trend across the entire time frame, with minor fluctuations. Beginning at roughly 17.3 billion US dollars at the end of 2015, the asset base experienced a slight dip around December 31, 2016, to about 15.96 billion US dollars, reshaping again in subsequent quarters with steady growth. Notably, from mid-2020 onwards, there is a pronounced increase in assets, reaching over 26 billion US dollars by mid-2021. This growth phase indicates possible asset acquisitions or increased investments during this period, suggestive of strategic expansion or enhanced capital deployment.
- Return on Assets (ROA)
- The ROA metric exhibits considerable oscillations coinciding with net income fluctuations but predominantly remains positive, reinforcing the company’s effective utilization of its asset base to generate earnings. Initial quarters register relatively low returns, around 3–4%, except for the March 31, 2017 quarter, which peaks substantially at 17.74%, reflecting the net income spike in the same period. Subsequent quarters sustain moderately elevated ROA levels, generally in the 7–10% range. Toward the end of the series, ROA stabilizes near 7.5%, reflecting steady profitability relative to asset size despite the growing asset base. This trend indicates a consistent ability to generate returns even as the company scales its operations.
- Summary of Financial Trends
- Overall, the financial data presents a narrative of resilience and growth amid episodic earnings volatility. After a pronounced loss in early 2016, the net income recovers sharply and stabilizes with positive gains that support sustainable operations. The substantial increase in total assets starting in 2020 points to strategic growth initiatives or investment activities that potentially enhance future earnings capacity. ROA trends corroborate effective asset deployment, evidencing maintained profitability as the asset base expands. The data suggests a company that has navigated through a challenging period, emerging with improved earnings consistency and strong asset growth.