Air Products & Chemicals Inc., balance sheet: debt

US$ in thousands

	Sep 30, 2020	Sep 30, 2019	Sep 30, 2018	Sep 30, 2017	Sep 30, 2016	Sep 30, 2015
Short-term borrowings	7,700)	58,200)	54,300)	144,000)	935,800)	1,494,300)
Current portion of long-term debt	470,000)	40,400)	406,600)	416,400)	371,300)	435,600)
Long-term debt, excluding current portion	7,132,900)	2,907,300)	2,967,400)	3,402,400)	4,918,100)	3,949,100)
Long-term debt, related party	297,200)	320,100)	384,300)	—)	—)	—)
Total debt (carrying amount)	7,907,800)	3,326,000)	3,812,600)	3,962,800)	6,225,200)	5,879,000)

Download chart

Debt item	Description	The company
Total debt (carrying amount)	Sum of the carrying values as of the balance sheet date of all debt plus capital lease obligations.	Air Products & Chemicals Inc. total debt decreased from 2018 to 2019 but then increased from 2019 to 2020 exceeding 2018 level.

	Sep 30, 2020
Selected Financial Data (US$ in thousands)
Short-term borrowings	7,700)
Long-term debt, including current portion and related party	8,278,400)
Total debt (fair value)	8,286,100)
Financial Ratio
Debt, fair value to carrying amount ratio	1.05

Weighted average interest rate of debt: 1.98%

Interest rate	Debt amount¹	Interest rate × Debt amount
8.75%	18,400)	1,610)
7.60%	17,200)	1,307)
3.00%	400,000)	12,000)
2.75%	400,000)	11,000)
3.35%	400,000)	13,400)
1.50%	550,000)	8,250)
1.85%	650,000)	12,025)
2.05%	900,000)	18,450)
2.70%	750,000)	20,250)
2.80%	950,000)	26,600)
0.10%	631,900)	632)
0.38%	410,300)	1,539)
1.00%	351,700)	3,517)
0.50%	586,200)	2,931)
0.80%	586,200)	4,690)
5.50%	338,500)	18,618)
10.90%	9,200)	1,003)
1.60%	7,700)	123)
Total	7,957,300)	157,944)
1.98%

¹ US$ in thousands

² Weighted-average interest rate = 100 × 157,944 ÷ 7,957,300 = 1.98%

Air Products & Chemicals Inc., interest costs incurred

US$ in thousands

12 months ended:	Sep 30, 2020	Sep 30, 2019	Sep 30, 2018	Sep 30, 2017	Sep 30, 2016	Sep 30, 2015
Interest expense	109,300)	137,000)	130,500)	120,600)	115,500)	103,500)
Capitalized interest	15,900)	13,500)	19,500)	19,000)	32,900)	49,100)
Interest costs incurred	125,200)	150,500)	150,000)	139,600)	148,400)	152,600)

Download chart

Debt item	Description	The company
Interest expense	Amount of the cost of borrowed funds accounted for as interest expense for debt.	Air Products & Chemicals Inc. interest expense increased from 2018 to 2019 but then decreased significantly from 2019 to 2020.
Capitalized interest	Amount of interest costs capitalized disclosed as an adjusting item to interest costs incurred.	Air Products & Chemicals Inc. capitalized interest decreased from 2018 to 2019 but then slightly increased from 2019 to 2020.
Interest costs incurred	Total interest costs incurred during the period and either capitalized or charged against earnings.	Air Products & Chemicals Inc. interest costs incurred increased from 2018 to 2019 but then decreased significantly from 2019 to 2020.

	Sep 30, 2020	Sep 30, 2019	Sep 30, 2018	Sep 30, 2017	Sep 30, 2016	Sep 30, 2015
Selected Financial Data (US$ in thousands)
Net income attributable to Air Products	1,886,700)	1,760,000)	1,497,800)	3,000,400)	631,100)	1,277,900)
Add: Net income attributable to noncontrolling interest	44,400)	49,400)	35,100)	20,800)	30,400)	39,700)
Less: Income (loss) from discontinued operations, net of tax	(14,300)	—)	42,200)	1,866,000)	(884,200)	—)
Add: Income tax expense	478,400)	480,100)	524,300)	260,900)	586,500)	415,900)
Add: Interest expense	109,300)	137,000)	130,500)	120,600)	115,500)	103,500)
Earnings before interest and tax (EBIT)	2,533,100)	2,426,500)	2,145,500)	1,536,700)	2,247,700)	1,837,000)

Interest costs incurred	125,200)	150,500)	150,000)	139,600)	148,400)	152,600)
Financial Ratio With and Without Capitalized Interest
Interest coverage ratio (without capitalized interest)¹	23.18	17.71	16.44	12.74	19.46	17.75
Adjusted interest coverage ratio (with capitalized interest)²	20.23	16.12	14.30	11.01	15.15	12.04

2020 Calculations

¹ Interest coverage ratio (without capitalized interest) = EBIT ÷ Interest expense
= 2,533,100 ÷ 109,300 = 23.18

² Adjusted interest coverage ratio (with capitalized interest) = EBIT ÷ Interest costs incurred
= 2,533,100 ÷ 125,200 = 20.23

Download chart

Solvency ratio	Description	The company
Adjusted interest coverage ratio	A solvency ratio calculated as EBIT divided by interest payments (including capitalized interest).	Air Products & Chemicals Inc. adjusted interest coverage ratio improved from 2018 to 2019 and from 2019 to 2020.

Air Products & Chemicals Inc. (NYSE:APD)

Analysis of Debt