Air Products and Chemicals Inc (APD)
Pretax margin
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 2,851,400 | 2,756,900 | 2,561,900 | 2,365,100 | 2,240,100 |
| Revenue | US$ in thousands | 12,600,000 | 12,698,600 | 10,323,000 | 8,856,300 | 8,918,900 |
| Pretax margin | 22.63% | 21.71% | 24.82% | 26.71% | 25.12% |
September 30, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $2,851,400K ÷ $12,600,000K
= 22.63%
To analyze Air Products & Chemicals Inc.'s pretax margin over the past five years, we can observe a fluctuating trend. The pretax margin for the fiscal year ending September 30, 2023, stood at 22.88%, representing an increase from the previous year's 21.69%. This indicates an improvement in the company's ability to generate profits before accounting for taxes.
However, it is important to note that the pretax margin has experienced a decline compared to the fiscal years ending September 30, 2021, and 2020, where the margins were 24.29% and 27.37% respectively. This downward trend suggests a potential reduction in the company's profitability efficiency in generating earnings before tax in recent years.
It would be beneficial to further investigate the reasons behind the fluctuations in the pretax margin, including any changes in the company's cost structure, revenue generation, and operating efficiency, to gain a comprehensive understanding of the financial performance and profitability dynamics of Air Products & Chemicals Inc.
Peer comparison
Sep 30, 2023