Air Products and Chemicals Inc (APD)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 32,002,500 | 27,192,600 | 26,859,200 | 25,168,500 | 18,942,800 |
| Operating ROA | 7.80% | 8.60% | 8.49% | 8.89% | 11.32% |
September 30, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $2,494,600K ÷ $32,002,500K
= 7.80%
To analyze Air Products & Chemicals Inc.'s operating return on assets (operating ROA), we need to consider the trend in the ratio over the past five years. The operating ROA measures a company's ability to generate operating income from its assets.
Air Products & Chemicals Inc.'s operating ROA has demonstrated a relatively consistent performance over the past five years, ranging from 8.25% to 11.19%. The slight fluctuations in the ratio suggest that the company has been able to effectively generate operating income relative to its asset base.
The decrease in operating ROA from 2019 to 2021 may indicate that the company's operating income generated from its assets has declined, potentially due to changes in the operating environment or the company's operational efficiency. However, the uptick in the ratio in 2022 and 2023 suggests a potential improvement in the company's ability to generate operating income from its assets.
It's important to note that the changes in operating ROA should be analyzed in conjunction with other financial metrics and qualitative factors to gain a comprehensive understanding of Air Products & Chemicals Inc.'s overall financial performance and operational effectiveness.
Peer comparison
Sep 30, 2023