Air Products and Chemicals Inc (APD)

Operating profit margin

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Operating income	US$ in thousands	2,494,600	2,338,800	2,281,400	2,237,600	2,144,400
Revenue	US$ in thousands	12,600,000	12,698,600	10,323,000	8,856,300	8,918,900
Operating profit margin		19.80%	18.42%	22.10%	25.27%	24.04%

September 30, 2023 calculation

Operating profit margin = Operating income ÷ Revenue
= $2,494,600K ÷ $12,600,000K
= 19.80%

The operating profit margin is a crucial indicator of a company's profitability and operational efficiency. It measures the percentage of revenue that remains after covering operating expenses, such as wages, depreciation, and cost of goods sold.

Looking at the operating profit margin of Air Products & Chemicals Inc. over the past five years, it is evident that there has been some fluctuation. In 2023, the operating profit margin stood at 21.46%, marking a significant increase from the previous year.

The 2022 margin of 18.56% was noticeably lower than both 2023 and 2021 figures, where the margin was again at 21.46%. However, both these years were down from 24.15% in 2020.

These fluctuations may indicate changes in the company's cost structure, pricing strategy, or efficiency in managing operating expenses. It's important to investigate the underlying reasons for these changes to understand the company's overall financial health.

Overall, while the 2023 increase in operating profit margin is a positive sign, it's essential to carefully monitor this ratio in the future to ensure sustained profitability and operational efficiency.