Air Products and Chemicals Inc (APD)

Gross profit margin

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Gross profit	US$ in thousands	2,496,600	2,302,100	2,242,200	2,998,200	2,914,400
Revenue	US$ in thousands	12,600,000	12,698,600	10,323,000	8,856,300	8,918,900
Gross profit margin		19.81%	18.13%	21.72%	33.85%	32.68%

September 30, 2023 calculation

Gross profit margin = Gross profit ÷ Revenue
= $2,496,600K ÷ $12,600,000K
= 19.81%

The gross profit margin of Air Products & Chemicals Inc. has fluctuated over the past five years. In fiscal year 2023, the gross profit margin increased to 29.90% from 26.46% in 2022. This improvement suggests that the company has been able to effectively control its cost of goods sold relative to its revenue, resulting in a higher margin on sales. However, it is important to note that the gross profit margin was higher in 2021 and 2020, at 30.39% and 33.85% respectively, indicating a potential decrease in efficiency in managing the cost of goods sold. This trend should be monitored closely to understand the factors influencing the company's ability to generate profits from its core business operations.