Air Products and Chemicals Inc (APD)
Return on total capital
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 4,466,100 | 3,028,900 | 2,884,900 | 2,703,700 | 2,474,400 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 17,036,500 | 14,312,900 | 13,144,000 | 13,539,700 | 12,079,800 |
| Return on total capital | 26.21% | 21.16% | 21.95% | 19.97% | 20.48% |
September 30, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $4,466,100K ÷ ($—K + $17,036,500K)
= 26.21%
The return on total capital for Air Products and Chemicals Inc has been relatively stable and consistently positive over the past five years. The company's return on total capital increased from 20.48% in 2020 to 26.21% in 2024, indicating an improving efficiency in generating returns from its total invested capital.
This upward trend suggests that Air Products and Chemicals Inc has been effectively utilizing its total capital to generate profits for its stakeholders. The company's ability to consistently achieve returns above 20% indicates efficient management of its resources and a strong performance in generating profits relative to the total capital employed in its operations.
Overall, the trend in Air Products and Chemicals Inc's return on total capital reflects a positive financial performance and efficiency in utilizing its capital over the years.
Peer comparison
Sep 30, 2024