Air Products and Chemicals Inc (APD)
Return on total capital
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 3,028,900 | 2,884,900 | 2,703,700 | 2,474,400 | 2,377,100 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 14,312,900 | 13,144,000 | 13,539,700 | 12,079,800 | 11,053,600 |
| Return on total capital | 21.16% | 21.95% | 19.97% | 20.48% | 21.51% |
September 30, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $3,028,900K ÷ ($—K + $14,312,900K)
= 21.16%
The return on total capital for Air Products & Chemicals Inc. has exhibited some fluctuation over the past five years. In 2023, the return on total capital was 13.44%, showing a slight decrease from the previous year's 13.65%. Comparatively, in 2021 and 2020, the return on total capital was 11.85% and 12.02% respectively, indicating a moderate increase from 2019's 16.24%. This suggests that the company's ability to generate earnings from its total capital has been somewhat inconsistent over the period. Further analysis of the company's financial performance and business operations may be necessary to understand the factors contributing to these fluctuations in return on total capital.
Peer comparison
Sep 30, 2023