Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
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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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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), 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 financial metrics demonstrate varying trends from the end of 2014 through mid-2021, reflecting both periods of growth and volatility.
- Gross Profit Margin
-
The gross profit margin shows a generally upward trend starting from the first recorded value of 29.82% at the end of 2014, gradually increasing to a peak of 34.44% in late 2019. Following this peak, there is a gradual decline, with the margin dropping back to 30.94% by mid-2021. This indicates improving efficiency and cost management through 2019, followed by some pressure on profitability thereafter.
- Operating Profit Margin
-
Operating profit margin exhibits a consistent increase from 17.17% in early 2015 to a high of approximately 25.86% by the end of 2020. After reaching this peak, it declines somewhat to 22.70% by mid-2021. The operating margin trend suggests steadily improving operational performance and expense control over most of the period, despite a moderate pullback in the most recent quarters.
- Net Profit Margin
-
The net profit margin reveals notable fluctuations compared to other margins. While starting at 12.91% in early 2015, it dips significantly mid-2015 to roughly 5.8% - 6.6%, then surges unexpectedly to very high levels above 30% between late 2016 and late 2017. This surge may result from one-time events or accounting adjustments. Subsequently, margins normalize around 13% to 21%, demonstrating improved profitability with some volatility but generally stabilizing at higher levels from 2018 through mid-2021.
- Return on Equity (ROE)
-
The ROE mirrors the net profit margin's variability. It starts around 17.63% at the end of 2014, plunges to about 7% - 9% during 2015-2016, then spikes dramatically to above 30% in late 2016 through 2017, followed by a decline but maintaining a range between 14% and 17% from 2018 onward. This pattern hints at extraordinary earnings events boosting shareholder returns temporarily and a later return to more stable but respectable profitability.
- Return on Assets (ROA)
-
ROA follows a somewhat similar pattern to ROE but with less extreme variability. It increases from about 7.33% at the end of 2014 to a low near 3.3% - 3.5% by mid-2015, then sharply rises to a peak of nearly 17.7% in late 2016. Afterward, it decreases but rises again gradually, stabilizing around 7% to 9.9% from 2018 through 2021. This trend indicates fluctuations in asset efficiency and profitability, potentially influenced by asset base changes or extraordinary income.
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 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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), 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
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.
- Sales Trend
- Sales figures exhibit a cyclical pattern with periodic fluctuations. Initially, sales decreased from 2,560,800 thousand USD at the end of 2014 to approximately 2,276,200 thousand USD by the first quarter of 2016. Subsequently, sales experienced a notable decline during the last quarter of 2016, reaching a low of 1,882,500 thousand USD. From then onward, there was a recovery and gradual growth, culminating in sales of 2,604,700 thousand USD by the second quarter of 2021. This suggests that after a trough in late 2016 and early 2017, the company managed to regain and exceed previous sales levels over the subsequent periods.
- Gross Profit Trend
- Gross profit followed a somewhat similar cyclical pattern to sales. It decreased from 729,800 thousand USD at the end of 2014 to a low of 564,400 thousand USD in the last quarter of 2016. After this point, gross profit rebounded and generally trended upward, reaching 802,800 thousand USD by mid-2021. This recovery and growth indicate effective cost management or improved pricing, aligning with the upward sales trend post-2016.
- Gross Profit Margin Trend
- Gross profit margin percentages were not provided for the initial quarters but started to be available from the third quarter of 2015 onwards, where margins were between approximately 29.73% and 32.78%. Following the low sales and gross profit period around late 2016, margins showed a consistent and steady improvement. Margins rose from the high 20% range in 2015 and 2016 to a peak of 34.44% in the fourth quarter of 2020 before slightly declining to 30.94% by the second quarter of 2021. The general upward trend in gross profit margins suggests enhanced operational efficiency or a shift in product mix favoring higher-margin items during this period.
- Pattern Summary
- The company demonstrated a cyclical financial pattern with a significant dip in sales and gross profit around the end of 2016, correlated with lower gross margins. This was followed by a recovery phase characterized by increasing sales and gross profit, as well as improving gross profit margins, peaking around late 2020. Margins and profitability slightly declined thereafter but remained well above the levels observed during the earlier low period. Overall, the financial data reflect resilience and adaptation, possibly due to improved cost controls, pricing strategies, or market conditions enabling recovery and growth after a challenging phase.
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 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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), 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
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 financial data reveals several important trends in operating income, sales, and the operating profit margin over the reviewed periods.
- Operating Income
- Operating income exhibited fluctuations throughout the periods with notable peaks and troughs. From the end of 2014 to the end of 2015, operating income generally increased, peaking near the end of 2015 and into early 2016. A significant decline is observed in the last quarter of 2016, followed by recovery and another increase until mid-2017. After this, operating income rises again, reaching its highest values around late 2018 and continuing with minor fluctuations into 2019. In 2020, despite some volatility likely related to broader economic challenges, operating income remains relatively stable but slightly lower than recent highs. By mid-2021 an upward trend resumes, approaching previous peak levels.
- Sales
- Sales follow a somewhat cyclical but generally positive trend over the analyzed period. Initial data shows a decline from the end of 2014 through early 2016 with some recovery by mid-2016. However, sales sharply dropped in late 2016, hitting the lowest point in the observed periods. Post this trough, a gradual and consistent recovery ensues from early 2017 through early 2019, although sales show minor fluctuations within this timeframe. The data for 2020 reflects some instability with a notable dip in mid-2020, likely influenced by external market factors. Nevertheless, towards mid-2021, sales display a robust recovery and reach the highest figures recorded during the entire dataset.
- Operating Profit Margin
- The operating profit margin data available from mid-2015 shows a steady increase over time. Starting in mid-2015 from approximately 17%, the margin expands consistently, surpassing 20% by early 2016 and maintaining an upward trajectory thereafter. By 2019, the margin exceeds 23%, peaking around 25% in early 2020. A slight contraction occurs in the first half of 2021; however, margins remain significantly higher than earlier periods. This sustained increase in operating profit margin suggests improved operational efficiency or favorable cost structures over time, despite sales and income volatility.
Overall, the trends indicate that while sales and operating income experienced periods of volatility and cyclical fluctuations, the operating profit margin improved consistently from 2015 onward. This points to enhanced profitability and operational control within the company. The recovery in sales and income figures after downturns, particularly in 2020, also reflects resilience and adaptability to changing market conditions.
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 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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), 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 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 quarterly financial data reveals several notable trends and fluctuations over the periods analyzed. The net income attributable to the company exhibits substantial volatility, with significant positive values intermixed with an isolated large loss. This pattern suggests periods of financial stress followed by rapid recovery. One such loss is observed in early 2016, which stands out as an anomaly compared to other quarters.
Sales figures demonstrate moderate variations without a clear consistent upward or downward trajectory. Sales peaked around the end of 2014 and experienced a decline into 2016, followed by a gradual recovery and a renewed increase towards the latter quarters. This indicates some cyclicality or external market effects influencing revenue generation.
The net profit margin percentages provide a clearer depiction of profitability trends, albeit with some data gaps early in the timeline. Starting from the available margin data in mid-2015, there is a fluctuating yet generally positive trend. Margins in late 2015 and throughout 2017 are high, reflecting efficient cost management or pricing power during these periods. Margins then consolidated at a high level from 2018 onwards, maintaining above 18%, and showed a slight incremental improvement into 2021, consistently remaining above 20%. This stable margin range indicates sustained profitability despite variations in sales and net income values.
- Net Income Trends
- Exhibits sharp fluctuations with a significant loss in the first quarter of 2016, otherwise remaining positive and often strong. Some quarters show exceptionally high net income, notably in early 2017 and late 2019.
- Sales Trends
- Sales volumes experienced a decline from 2014 through early 2016, followed by a recovery and steady growth through 2021, culminating in the highest sales figure towards mid-2021.
- Net Profit Margin
- After initial missing data, margins show variability but largely hold steady in a profitable range, particularly strengthening from 2018 onwards. Margins consistently exceed 18%, indicating effective cost control and pricing strategies during those periods.
Overall, the data reflects a company that underwent financial challenges early in the period but stabilized and improved profitability and sales in recent years. While net income is relatively volatile, the net profit margin suggests successful management of operational efficiency across the majority of quarters evaluated.
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 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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), 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
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 quarterly financial data indicates varied trends in net income attributable to Air Products and shareholders’ equity over the observed periods.
- Net Income
- The net income values exhibit significant fluctuations throughout the timeline. Initially, the net income values remain positive, with some notable increases, such as the peak in March 2017 at 2,130,000 US$ thousands. However, an abrupt loss is observed in March 2016 with a negative figure of -473,300 US$ thousands. Following this loss, the net income swiftly recovers and maintains a generally upward trajectory with some variability. From 2017 onward, net income demonstrates overall stability with moderate growth, reaching the figure of 533,600 US$ thousands in June 2021.
- Shareholders’ Equity
- The total shareholders’ equity maintains a generally positive trend throughout the periods. Starting at approximately 7,351,500 US$ thousands in December 2014, it experiences modest fluctuations till December 2016, followed by a notable increase, reaching over 10 million US$ thousands by the end of 2017. Post-2017, shareholders’ equity continues to rise, with continuous growth through to the last recorded period in June 2021, peaking at approximately 13,082,900 US$ thousands. This steady growth indicates sustained capital accumulation and overall expansion in the company’s equity base.
- Return on Equity (ROE)
- The ROE data, available selectively from 2015 onwards, reflects strong performance variability. Between late 2015 and early 2016, ROE begins in the range of 8% before notably rising to above 30% in early 2017, correlating with the large spike in net income observed at the same time. Afterwards, ROE levels stabilize and fluctuate moderately within a 14% to 17% range through to mid-2021. These figures suggest the company’s ability to generate consistent returns on shareholders' equity after recovering from the earlier dip.
Overall, the financial data conveys a narrative of initial volatility, particularly around early 2016 with a substantial loss, followed by a recovery and stabilization phase characterized by growth in net income and shareholders' equity. The return on equity aligns with these trends, demonstrating the company’s enhanced profitability and efficient use of equity capital in most periods post-2016.
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 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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), 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
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.
The quarterly financial data reveals several noteworthy trends and changes over the examined periods.
- Net Income (Loss) Attributable to Air Products
-
Net income figures exhibit considerable volatility across the quarters. Initially, from late 2014 to late 2015, net income ranges mostly between approximately $290 million and $364 million, showing moderate fluctuations. However, a sharp deviation is observed in the first quarter of 2016, where a significant loss of approximately $473 million occurs, interrupting the otherwise positive performance trend.
Following this loss, net income rebounds sharply in the subsequent quarters of 2016, with values mostly in the range of $300 million to nearly $400 million. This recovery indicates resilience and a return to profitability. Throughout 2017 and 2018, net income generally remains positive, with some variation but maintaining levels between about $150 million to $474 million, affirming relative stability and growth in profitability over this period.
In the years 2019 through mid-2021, net income continues to demonstrate positive results with a gradual upward tendency. Most quarters report figures ranging from approximately $347 million to $533 million, with some minor fluctuations. This sustained positive performance suggests an overall strengthening financial position despite the earlier observed loss.
- Total Assets
-
The total asset base shows a mixed pattern with some fluctuations. The value begins at roughly $17.6 billion at the end of 2014 and fluctuates modestly over the next couple of years, generally moving between $16.8 billion and $19.5 billion. There is a notable dip around the end of 2016, with assets falling to about $15.9 billion, followed by a recovery and stabilization in the higher range through 2017 and 2018.
From early 2019 through mid-2021, a distinct upward trajectory is observed. Assets increase markedly from approximately $19.4 billion to around $26.3 billion by mid-2021. This growth may reflect business expansion, capital investments, asset acquisitions, or other strategic initiatives contributing to a stronger asset base.
- Return on Assets (ROA)
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Return on Assets displays a variable trend with certain sharp changes. Early in the periods without explicit percentage data, the earliest percentage values start in mid-2015 at around 7.33% and rise slightly to 7.63%. Thereafter, ROA declines significantly in the middle quarters of 2016 to approximately 3.29% to 3.56%, possibly linked to the major net income loss noted in early 2016.
Following this decline, ROA experiences a substantial increase reaching a peak of 17.74% in early 2017, maintaining elevated levels near 16.25% to 16.39% through 2017. This indicates a period of strong efficiency in asset use generating profit.
Subsequently, during late 2017 and onward into 2019, ROA stabilizes in a moderate and consistent range around 7% to 9%, suggesting steady and effective asset utilization. Despite market and performance fluctuations observed elsewhere, this relative consistency supports a sustained capability to generate earnings from asset holdings.
In summary, the data reflect a period influenced by a significant impairment or one-time charge in early 2016, followed by recovery and growth in profitability and asset base. Overall, the firm tends to maintain or improve profitability and asset efficiency over time, especially in the latter periods, with a generally positive outlook indicated by rising net income and asset values alongside stable returns on assets.