Air Products and Chemicals Inc (APD)
Operating return on assets (Operating ROA)
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 4,466,100 | 2,494,600 | 2,338,800 | 2,281,400 | 2,237,600 |
| Total assets | US$ in thousands | 39,574,600 | 32,002,500 | 27,192,600 | 26,859,200 | 25,168,500 |
| Operating ROA | 11.29% | 7.80% | 8.60% | 8.49% | 8.89% |
September 30, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $4,466,100K ÷ $39,574,600K
= 11.29%
The operating return on assets (operating ROA) of Air Products and Chemicals Inc has shown a positive trend over the past five years. The company's operating ROA increased from 8.89% in 2020 to 11.29% in 2024, indicating an improvement in the company's ability to generate operating profit relative to its total assets.
This consistent upward trend in operating ROA suggests that Air Products and Chemicals Inc has been effectively utilizing its assets to generate operating income. The company's operating ROA outperformed the previous year's ratio in each consecutive year, reflecting the management's efficiency in utilizing its assets to drive operating profitability.
The increasing trend in operating ROA demonstrates the company's ability to efficiently deploy its assets to generate operating income, which can be indicative of effective operational management and strategic decision-making. Overall, the improvement in Air Products and Chemicals Inc's operating ROA signals positive performance and effective asset utilization over the past five years.
Peer comparison
Sep 30, 2024