Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Air Products & Chemicals Inc., solvency ratios
Based on: 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Air Products & Chemicals Inc. debt to equity ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020. |
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Air Products & Chemicals Inc. debt to equity ratio (including operating lease liability) improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Air Products & Chemicals Inc. debt to capital ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020. |
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Air Products & Chemicals Inc. debt to capital ratio (including operating lease liability) improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Air Products & Chemicals Inc. debt to assets ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020. |
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Air Products & Chemicals Inc. debt to assets ratio (including operating lease liability) improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Air Products & Chemicals Inc. financial leverage ratio decreased from 2018 to 2019 but then increased from 2019 to 2020 exceeding 2018 level. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Air Products & Chemicals Inc. interest coverage ratio improved from 2018 to 2019 and from 2019 to 2020. |
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Air Products & Chemicals Inc. fixed charge coverage ratio improved from 2018 to 2019 and from 2019 to 2020. |
Debt to Equity
Air Products & Chemicals Inc., debt to equity calculation, comparison to benchmarks
| Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | Sep 30, 2017 | Sep 30, 2016 | Sep 30, 2015 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| 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 | 7,907,800) | 3,326,000) | 3,812,600) | 3,962,800) | 6,225,200) | 5,879,000) | |
| Total Air Products shareholders’ equity | 12,079,800) | 11,053,600) | 10,857,500) | 10,086,200) | 7,079,600) | 7,249,000) | |
| Solvency Ratio | |||||||
| Debt to equity1 | 0.65 | 0.30 | 0.35 | 0.39 | 0.88 | 0.81 | |
| Benchmarks | |||||||
| Debt to Equity, Competitors2 | |||||||
| Linde plc | 0.34 | — | — | — | — | — | |
| Sherwin-Williams Co. | 2.30 | — | — | — | — | — | |
| Debt to Equity, Sector | |||||||
| Chemicals | 0.48 | — | — | — | — | — | |
| Debt to Equity, Industry | |||||||
| Materials | 0.56 | — | — | — | — | — | |
Based on: 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30).
1 2020 Calculation
Debt to equity = Total debt ÷ Total Air Products shareholders’ equity
= 7,907,800 ÷ 12,079,800 = 0.65
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Air Products & Chemicals Inc. debt to equity ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020. |
Debt to Equity (including Operating Lease Liability)
Air Products & Chemicals Inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | Sep 30, 2017 | Sep 30, 2016 | Sep 30, 2015 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| 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 | 7,907,800) | 3,326,000) | 3,812,600) | 3,962,800) | 6,225,200) | 5,879,000) | |
| Current operating lease liabilities | 70,700) | —) | —) | —) | —) | —) | |
| Noncurrent operating lease liabilities | 335,800) | —) | —) | —) | —) | —) | |
| Total debt (including operating lease liability) | 8,314,300) | 3,326,000) | 3,812,600) | 3,962,800) | 6,225,200) | 5,879,000) | |
| Total Air Products shareholders’ equity | 12,079,800) | 11,053,600) | 10,857,500) | 10,086,200) | 7,079,600) | 7,249,000) | |
| Solvency Ratio | |||||||
| Debt to equity (including operating lease liability)1 | 0.69 | 0.30 | 0.35 | 0.39 | 0.88 | 0.81 | |
| Benchmarks | |||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | |||||||
| Linde plc | 0.36 | — | — | — | — | — | |
| Sherwin-Williams Co. | 2.80 | — | — | — | — | — | |
| Debt to Equity (including Operating Lease Liability), Sector | |||||||
| Chemicals | 0.54 | — | — | — | — | — | |
| Debt to Equity (including Operating Lease Liability), Industry | |||||||
| Materials | 0.61 | — | — | — | — | — | |
Based on: 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30).
1 2020 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Total Air Products shareholders’ equity
= 8,314,300 ÷ 12,079,800 = 0.69
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Air Products & Chemicals Inc. debt to equity ratio (including operating lease liability) improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020. |
Debt to Capital
Air Products & Chemicals Inc., debt to capital calculation, comparison to benchmarks
| Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | Sep 30, 2017 | Sep 30, 2016 | Sep 30, 2015 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| 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 | 7,907,800) | 3,326,000) | 3,812,600) | 3,962,800) | 6,225,200) | 5,879,000) | |
| Total Air Products shareholders’ equity | 12,079,800) | 11,053,600) | 10,857,500) | 10,086,200) | 7,079,600) | 7,249,000) | |
| Total capital | 19,987,600) | 14,379,600) | 14,670,100) | 14,049,000) | 13,304,800) | 13,128,000) | |
| Solvency Ratio | |||||||
| Debt to capital1 | 0.40 | 0.23 | 0.26 | 0.28 | 0.47 | 0.45 | |
| Benchmarks | |||||||
| Debt to Capital, Competitors2 | |||||||
| Linde plc | 0.26 | — | — | — | — | — | |
| Sherwin-Williams Co. | 0.70 | — | — | — | — | — | |
| Debt to Capital, Sector | |||||||
| Chemicals | 0.33 | — | — | — | — | — | |
| Debt to Capital, Industry | |||||||
| Materials | 0.36 | — | — | — | — | — | |
Based on: 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30).
1 2020 Calculation
Debt to capital = Total debt ÷ Total capital
= 7,907,800 ÷ 19,987,600 = 0.40
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Air Products & Chemicals Inc. debt to capital ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020. |
Debt to Capital (including Operating Lease Liability)
Air Products & Chemicals Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | Sep 30, 2017 | Sep 30, 2016 | Sep 30, 2015 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| 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 | 7,907,800) | 3,326,000) | 3,812,600) | 3,962,800) | 6,225,200) | 5,879,000) | |
| Current operating lease liabilities | 70,700) | —) | —) | —) | —) | —) | |
| Noncurrent operating lease liabilities | 335,800) | —) | —) | —) | —) | —) | |
| Total debt (including operating lease liability) | 8,314,300) | 3,326,000) | 3,812,600) | 3,962,800) | 6,225,200) | 5,879,000) | |
| Total Air Products shareholders’ equity | 12,079,800) | 11,053,600) | 10,857,500) | 10,086,200) | 7,079,600) | 7,249,000) | |
| Total capital (including operating lease liability) | 20,394,100) | 14,379,600) | 14,670,100) | 14,049,000) | 13,304,800) | 13,128,000) | |
| Solvency Ratio | |||||||
| Debt to capital (including operating lease liability)1 | 0.41 | 0.23 | 0.26 | 0.28 | 0.47 | 0.45 | |
| Benchmarks | |||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | |||||||
| Linde plc | 0.27 | — | — | — | — | — | |
| Sherwin-Williams Co. | 0.74 | — | — | — | — | — | |
| Debt to Capital (including Operating Lease Liability), Sector | |||||||
| Chemicals | 0.35 | — | — | — | — | — | |
| Debt to Capital (including Operating Lease Liability), Industry | |||||||
| Materials | 0.38 | — | — | — | — | — | |
Based on: 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30).
1 2020 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 8,314,300 ÷ 20,394,100 = 0.41
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Air Products & Chemicals Inc. debt to capital ratio (including operating lease liability) improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020. |
Debt to Assets
Air Products & Chemicals Inc., debt to assets calculation, comparison to benchmarks
| Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | Sep 30, 2017 | Sep 30, 2016 | Sep 30, 2015 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| 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 | 7,907,800) | 3,326,000) | 3,812,600) | 3,962,800) | 6,225,200) | 5,879,000) | |
| Total assets | 25,168,500) | 18,942,800) | 19,178,300) | 18,467,200) | 18,055,300) | 17,438,100) | |
| Solvency Ratio | |||||||
| Debt to assets1 | 0.31 | 0.18 | 0.20 | 0.21 | 0.34 | 0.34 | |
| Benchmarks | |||||||
| Debt to Assets, Competitors2 | |||||||
| Linde plc | 0.18 | — | — | — | — | — | |
| Sherwin-Williams Co. | 0.41 | — | — | — | — | — | |
| Debt to Assets, Sector | |||||||
| Chemicals | 0.23 | — | — | — | — | — | |
| Debt to Assets, Industry | |||||||
| Materials | 0.23 | — | — | — | — | — | |
Based on: 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30).
1 2020 Calculation
Debt to assets = Total debt ÷ Total assets
= 7,907,800 ÷ 25,168,500 = 0.31
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Air Products & Chemicals Inc. debt to assets ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020. |
Debt to Assets (including Operating Lease Liability)
Air Products & Chemicals Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | Sep 30, 2017 | Sep 30, 2016 | Sep 30, 2015 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| 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 | 7,907,800) | 3,326,000) | 3,812,600) | 3,962,800) | 6,225,200) | 5,879,000) | |
| Current operating lease liabilities | 70,700) | —) | —) | —) | —) | —) | |
| Noncurrent operating lease liabilities | 335,800) | —) | —) | —) | —) | —) | |
| Total debt (including operating lease liability) | 8,314,300) | 3,326,000) | 3,812,600) | 3,962,800) | 6,225,200) | 5,879,000) | |
| Total assets | 25,168,500) | 18,942,800) | 19,178,300) | 18,467,200) | 18,055,300) | 17,438,100) | |
| Solvency Ratio | |||||||
| Debt to assets (including operating lease liability)1 | 0.33 | 0.18 | 0.20 | 0.21 | 0.34 | 0.34 | |
| Benchmarks | |||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | |||||||
| Linde plc | 0.20 | — | — | — | — | — | |
| Sherwin-Williams Co. | 0.50 | — | — | — | — | — | |
| Debt to Assets (including Operating Lease Liability), Sector | |||||||
| Chemicals | 0.25 | — | — | — | — | — | |
| Debt to Assets (including Operating Lease Liability), Industry | |||||||
| Materials | 0.25 | — | — | — | — | — | |
Based on: 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30).
1 2020 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 8,314,300 ÷ 25,168,500 = 0.33
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Air Products & Chemicals Inc. debt to assets ratio (including operating lease liability) improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020. |
Financial Leverage
Air Products & Chemicals Inc., financial leverage calculation, comparison to benchmarks
| Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | Sep 30, 2017 | Sep 30, 2016 | Sep 30, 2015 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Total assets | 25,168,500) | 18,942,800) | 19,178,300) | 18,467,200) | 18,055,300) | 17,438,100) | |
| Total Air Products shareholders’ equity | 12,079,800) | 11,053,600) | 10,857,500) | 10,086,200) | 7,079,600) | 7,249,000) | |
| Solvency Ratio | |||||||
| Financial leverage1 | 2.08 | 1.71 | 1.77 | 1.83 | 2.55 | 2.41 | |
| Benchmarks | |||||||
| Financial Leverage, Competitors2 | |||||||
| Linde plc | 1.86 | — | — | — | — | — | |
| Sherwin-Williams Co. | 5.65 | — | — | — | — | — | |
| Financial Leverage, Sector | |||||||
| Chemicals | 2.13 | — | — | — | — | — | |
| Financial Leverage, Industry | |||||||
| Materials | 2.47 | — | — | — | — | — | |
Based on: 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30).
1 2020 Calculation
Financial leverage = Total assets ÷ Total Air Products shareholders’ equity
= 25,168,500 ÷ 12,079,800 = 2.08
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Air Products & Chemicals Inc. financial leverage ratio decreased from 2018 to 2019 but then increased from 2019 to 2020 exceeding 2018 level. |
Interest Coverage
Air Products & Chemicals Inc., interest coverage calculation, comparison to benchmarks
| 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) | |
| Solvency Ratio | |||||||
| Interest coverage1 | 23.18 | 17.71 | 16.44 | 12.74 | 19.46 | 17.75 | |
| Benchmarks | |||||||
| Interest Coverage, Competitors2 | |||||||
| Linde plc | 21.41 | — | — | — | — | — | |
| Sherwin-Williams Co. | 8.40 | — | — | — | — | — | |
| Interest Coverage, Sector | |||||||
| Chemicals | 12.73 | — | — | — | — | — | |
| Interest Coverage, Industry | |||||||
| Materials | 8.03 | — | — | — | — | — | |
Based on: 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30).
1 2020 Calculation
Interest coverage = EBIT ÷ Interest expense
= 2,533,100 ÷ 109,300 = 23.18
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Air Products & Chemicals Inc. interest coverage ratio improved from 2018 to 2019 and from 2019 to 2020. |
Fixed Charge Coverage
Air Products & Chemicals Inc., fixed charge coverage calculation, comparison to benchmarks
| 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) | |
| Add: Operating lease expense | 80,100) | 87,000) | 82,700) | 65,800) | 80,800) | 95,500) | |
| Earnings before fixed charges and tax | 2,613,200) | 2,513,500) | 2,228,200) | 1,602,500) | 2,328,500) | 1,932,500) | |
| Interest expense | 109,300) | 137,000) | 130,500) | 120,600) | 115,500) | 103,500) | |
| Operating lease expense | 80,100) | 87,000) | 82,700) | 65,800) | 80,800) | 95,500) | |
| Fixed charges | 189,400) | 224,000) | 213,200) | 186,400) | 196,300) | 199,000) | |
| Solvency Ratio | |||||||
| Fixed charge coverage1 | 13.80 | 11.22 | 10.45 | 8.60 | 11.86 | 9.71 | |
| Benchmarks | |||||||
| Fixed Charge Coverage, Competitors2 | |||||||
| Linde plc | 7.79 | — | — | — | — | — | |
| Sherwin-Williams Co. | 4.13 | — | — | — | — | — | |
| Fixed Charge Coverage, Sector | |||||||
| Chemicals | 5.55 | — | — | — | — | — | |
| Fixed Charge Coverage, Industry | |||||||
| Materials | 4.84 | — | — | — | — | — | |
Based on: 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30).
1 2020 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 2,613,200 ÷ 189,400 = 13.80
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Air Products & Chemicals Inc. fixed charge coverage ratio improved from 2018 to 2019 and from 2019 to 2020. |