Air Products and Chemicals Inc (APD)
Return on total capital
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 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 | 2,377,100 | 2,270,100 | 2,254,500 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 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 | 11,053,600 | 11,386,100 | 11,165,700 |
| Return on total capital | 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% | 21.51% | 19.94% | 20.19% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $3,077,300K ÷ ($—K + $14,873,000K)
= 20.69%
Air Products & Chemicals Inc. exhibited a relatively stable trend in its return on total capital over the past eight quarters. The company's return on total capital ranged from 12.38% to 13.65%. Although there were slight fluctuations in the values, the overall performance remained consistent within a narrow range. This indicates that Air Products & Chemicals Inc. has been efficiently utilizing its total capital to generate returns for its stakeholders. The company's consistent performance in this metric reflects its ability to effectively manage its capital structure and investment decisions. The average return on total capital over the period was approximately 13.08%, showing a healthy profitability level relative to the capital employed.
Peer comparison
Dec 31, 2023