Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Air Products & Chemicals Inc., profitability 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).
| 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. gross profit margin ratio improved from 2018 to 2019 and from 2019 to 2020. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Air Products & Chemicals Inc. operating profit margin ratio improved from 2018 to 2019 and from 2019 to 2020. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Air Products & Chemicals Inc. net profit margin ratio improved from 2018 to 2019 and from 2019 to 2020. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Air Products & Chemicals Inc. ROE improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020. |
| ROA | A profitability ratio calculated as net income divided by total assets. | Air Products & Chemicals Inc. ROA improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020. |
Gross Profit Margin
Air Products & Chemicals Inc., gross profit margin 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) | |||||||
| Gross profit | 2,998,200) | 2,914,400) | 2,740,700) | 2,434,200) | 3,121,700) | 2,950,800) | |
| Sales | 8,856,300) | 8,918,900) | 8,930,200) | 8,187,600) | 9,524,400) | 9,894,900) | |
| Profitability Ratio | |||||||
| Gross profit margin1 | 33.85% | 32.68% | 30.69% | 29.73% | 32.78% | 29.82% | |
| Benchmarks | |||||||
| Gross Profit Margin, Competitors2 | |||||||
| Linde plc | 43.53% | 41.04% | — | — | — | — | |
| Sherwin-Williams Co. | 47.29% | 44.89% | — | — | — | — | |
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
Gross profit margin = 100 × Gross profit ÷ Sales
= 100 × 2,998,200 ÷ 8,856,300 = 33.85%
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. gross profit margin ratio improved from 2018 to 2019 and from 2019 to 2020. |
Operating Profit Margin
Air Products & Chemicals Inc., operating profit margin 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) | |||||||
| Operating income | 2,237,600) | 2,144,400) | 1,965,600) | 1,427,600) | 2,106,000) | 1,699,100) | |
| Sales | 8,856,300) | 8,918,900) | 8,930,200) | 8,187,600) | 9,524,400) | 9,894,900) | |
| Profitability Ratio | |||||||
| Operating profit margin1 | 25.27% | 24.04% | 22.01% | 17.44% | 22.11% | 17.17% | |
| Benchmarks | |||||||
| Operating Profit Margin, Competitors2 | |||||||
| Linde plc | 12.19% | 10.39% | — | — | — | — | |
| Sherwin-Williams Co. | 15.58% | 12.78% | — | — | — | — | |
| Operating Profit Margin, Sector | |||||||
| Chemicals | 13.56% | 11.32% | — | — | — | — | |
| Operating Profit Margin, Industry | |||||||
| Materials | 14.41% | 10.43% | — | — | — | — | |
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
Operating profit margin = 100 × Operating income ÷ Sales
= 100 × 2,237,600 ÷ 8,856,300 = 25.27%
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. operating profit margin ratio improved from 2018 to 2019 and from 2019 to 2020. |
Net Profit Margin
Air Products & Chemicals Inc., net profit margin 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) | |
| Sales | 8,856,300) | 8,918,900) | 8,930,200) | 8,187,600) | 9,524,400) | 9,894,900) | |
| Profitability Ratio | |||||||
| Net profit margin1 | 21.30% | 19.73% | 16.77% | 36.65% | 6.63% | 12.91% | |
| Benchmarks | |||||||
| Net Profit Margin, Competitors2 | |||||||
| Linde plc | 9.18% | 8.09% | — | — | — | — | |
| Sherwin-Williams Co. | 11.06% | 8.61% | — | — | — | — | |
| Net Profit Margin, Sector | |||||||
| Chemicals | 9.94% | 8.29% | — | — | — | — | |
| Net Profit Margin, Industry | |||||||
| Materials | 8.58% | 5.93% | — | — | — | — | |
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
Net profit margin = 100 × Net income attributable to Air Products ÷ Sales
= 100 × 1,886,700 ÷ 8,856,300 = 21.30%
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. net profit margin ratio improved from 2018 to 2019 and from 2019 to 2020. |
Return on Equity (ROE)
Air Products & Chemicals Inc., ROE 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) | |
| Total Air Products shareholders’ equity | 12,079,800) | 11,053,600) | 10,857,500) | 10,086,200) | 7,079,600) | 7,249,000) | |
| Profitability Ratio | |||||||
| ROE1 | 15.62% | 15.92% | 13.80% | 29.75% | 8.91% | 17.63% | |
| Benchmarks | |||||||
| ROE, Competitors2 | |||||||
| Linde plc | 5.29% | 4.66% | — | — | — | — | |
| Sherwin-Williams Co. | 56.23% | 37.38% | — | — | — | — | |
| ROE, Sector | |||||||
| Chemicals | 8.90% | 7.19% | — | — | — | — | |
| ROE, Industry | |||||||
| Materials | 8.40% | 5.74% | — | — | — | — | |
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
ROE = 100 × Net income attributable to Air Products ÷ Total Air Products shareholders’ equity
= 100 × 1,886,700 ÷ 12,079,800 = 15.62%
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. ROE improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020. |
Return on Assets (ROA)
Air Products & Chemicals Inc., ROA 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) | |
| Total assets | 25,168,500) | 18,942,800) | 19,178,300) | 18,467,200) | 18,055,300) | 17,438,100) | |
| Profitability Ratio | |||||||
| ROA1 | 7.50% | 9.29% | 7.81% | 16.25% | 3.50% | 7.33% | |
| Benchmarks | |||||||
| ROA, Competitors2 | |||||||
| Linde plc | 2.83% | 2.64% | — | — | — | — | |
| Sherwin-Williams Co. | 9.95% | 7.52% | — | — | — | — | |
| ROA, Sector | |||||||
| Chemicals | 4.17% | 3.57% | — | — | — | — | |
| ROA, Industry | |||||||
| Materials | 3.40% | 2.43% | — | — | — | — | |
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
ROA = 100 × Net income attributable to Air Products ÷ Total assets
= 100 × 1,886,700 ÷ 25,168,500 = 7.50%
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. ROA improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020. |