Air Products and Chemicals Inc (APD)

Return on assets (ROA)

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Net income	US$ in thousands	2,300,200	2,256,100	2,099,100	1,886,700	1,760,000
Total assets	US$ in thousands	32,002,500	27,192,600	26,859,200	25,168,500	18,942,800
ROA		7.19%	8.30%	7.82%	7.50%	9.29%

September 30, 2023 calculation

ROA = Net income ÷ Total assets
= $2,300,200K ÷ $32,002,500K
= 7.19%

To analyze the return on assets (ROA) of Air Products & Chemicals Inc. over the past five years, we can observe a fluctuating trend. In 2023, the ROA decreased to 7.19% from 8.30% in 2022. This decline signifies a decrease in the company's ability to generate earnings from its assets. However, it's important to note that the ROA of 7.19% is still higher than the ROA in 2020 and 2021, indicating an improvement from those years.

The ROA of 7.19% suggests that for every dollar of assets, the company generated a net income of approximately 7.19 cents, reflecting a moderate level of efficiency in asset management. It's also important to consider the industry averages and compare the company's ROA to its competitors for a more comprehensive assessment.

Overall, the fluctuating ROA of Air Products & Chemicals Inc. over the past five years implies a varying level of effectiveness in generating earnings from its assets, which could be influenced by internal operational factors, industry dynamics, and economic conditions. Further analysis of the company's financial and operational performance is recommended to better understand the drivers behind these fluctuations.