Air Products and Chemicals Inc (APD)
Profitability ratios
Return on sales
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 19.81% | 18.13% | 21.72% | 33.85% | 32.68% |
| Operating profit margin | 19.80% | 18.42% | 22.10% | 25.27% | 24.04% |
| Pretax margin | 22.63% | 21.71% | 24.82% | 26.71% | 25.12% |
| Net profit margin | 18.26% | 17.77% | 20.33% | 21.30% | 19.73% |
Air Products & Chemicals Inc.'s profitability ratios display trends over the past five years. The company's gross profit margin was 29.90% in 2023, up from 26.46% in 2022 but below the 30.39% in 2021. This trend may indicate improved cost controls in 2023, following a decrease in 2022. The operating profit margin also showed a similar trend, increasing to 21.46% in 2023 from 18.56% in 2022, indicating improved operational efficiency.
The pretax margin for the company was 22.88% in 2023, which was higher than the 21.69% in 2022 but lower than the 24.29% in 2021. This may suggest lower non-operating expenses in 2023, contributing to increased profitability. Additionally, the net profit margin was 18.26% in 2023, slightly higher than 17.77% in 2022, but lower than the 20.33% in 2021. This trend may reveal that though the company's revenue is increasing, its costs are also increasing, resulting in a smaller percentage of net profit.
Overall, the company has shown fluctuating profitability margins in recent years, with increases in some ratios in 2023 after experiencing declines in 2022. These trends may reflect changes in the company's cost structures, operating efficiency, and non-operating expenses that impact its overall profitability.
Return on investment
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 7.80% | 8.60% | 8.49% | 8.89% | 11.32% |
| Return on assets (ROA) | 7.19% | 8.30% | 7.82% | 7.50% | 9.29% |
| Return on total capital | 21.16% | 21.95% | 19.97% | 20.48% | 21.51% |
| Return on equity (ROE) | 16.07% | 17.16% | 15.50% | 15.62% | 15.92% |
The profitability ratios of Air Products & Chemicals Inc. have shown some fluctuations over the past five years.
The operating return on assets (Operating ROA) has ranged from 8.25% to 11.19%, indicating the company's ability to generate profits from its assets used in operations. The return on assets (ROA) has shown a similar trend, varying from 7.50% to 9.29%, reflecting the company's overall efficiency in generating profits from its total assets.
The return on total capital has fluctuated between 11.85% and 16.24%, demonstrating the company's ability to generate returns for both equity and debt holders. The return on equity (ROE) has ranged from 15.50% to 17.16%, depicting the profitability of shareholder investments in the company.
Overall, while the profitability ratios have experienced some variability, indicating fluctuations in the company's ability to generate profits, Air Products & Chemicals Inc. has generally maintained healthy profitability levels over the past five years.