Air Products and Chemicals Inc (APD)
Return on total capital
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 4,723,000 | 3,193,400 | 3,238,400 | 3,077,300 | 3,028,900 | 2,880,300 | 2,846,700 | 2,930,500 | 2,884,900 | 2,907,800 | 2,829,700 | 2,775,300 | 2,703,700 | 2,560,500 | 2,477,500 | 2,492,000 | 2,474,400 | 2,513,000 | 2,556,600 | 2,475,200 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 17,036,500 | 15,101,300 | 14,913,400 | 14,873,000 | 14,312,900 | 14,138,000 | 14,058,300 | 13,935,700 | 13,144,000 | 13,643,900 | 13,955,100 | 13,825,100 | 13,539,700 | 13,082,900 | 12,726,200 | 12,683,600 | 12,079,800 | 11,659,300 | 11,371,900 | 11,556,000 |
| Return on total capital | 27.72% | 21.15% | 21.71% | 20.69% | 21.16% | 20.37% | 20.25% | 21.03% | 21.95% | 21.31% | 20.28% | 20.07% | 19.97% | 19.57% | 19.47% | 19.65% | 20.48% | 21.55% | 22.48% | 21.42% |
September 30, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $4,723,000K ÷ ($—K + $17,036,500K)
= 27.72%
Air Products and Chemicals Inc's return on total capital has shown a consistent positive trend over the past few quarters. The return on total capital has ranged from 19.47% to 27.72% over the last 20 quarters, with a recent high of 27.72% in September 2024. This indicates that the company has been effectively utilizing its capital to generate returns for its investors.
The average return on total capital over this period appears to be around 21%, suggesting that Air Products and Chemicals Inc has been successful in generating a return that exceeds its cost of capital. This consistent performance is a positive indicator of the company's financial health and operational efficiency.
Overall, the consistent and relatively high return on total capital for Air Products and Chemicals Inc reflects positively on the company's ability to generate value for its shareholders by effectively managing its capital investments.
Peer comparison
Sep 30, 2024