Air Products and Chemicals Inc (APD)
Solvency ratios
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.32 | 2.24 | 2.07 | 1.98 | 2.08 |
Air Products and Chemicals Inc has consistently maintained a low and stable level of debt relative to its assets, capital, and equity over the past five years, with all solvency ratios showing a value of 0.00. This indicates that the company relies minimally on debt to finance its operations and investments, which can be seen as a positive sign of financial stability and strength.
However, looking at the financial leverage ratio, we observe a slight fluctuation in the company's leverage position over the same period. In 2024, the financial leverage ratio increased to 2.32 from 2.24 in 2023, indicating that the company's reliance on debt to finance its assets and operations has slightly increased. Despite this, the ratio remains within a reasonable range, suggesting that Air Products and Chemicals Inc has managed its leverage effectively.
Overall, the solvency ratios suggest that Air Products and Chemicals Inc is in a strong financial position with low debt levels, which can be beneficial in mitigating financial risks and supporting sustainable growth in the long term.
Coverage ratios
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 20.41 | 17.06 | 22.54 | 19.07 | 22.64 |
The interest coverage ratio for Air Products and Chemicals Inc has shown variations over the past five years. It stood at 20.41 in 2024, indicating the company was able to cover its interest expenses approximately 20 times using its operating income. This suggests a strong ability to meet interest obligations.
Comparing this to previous years, the interest coverage was 17.06 in 2023, 22.54 in 2022, 19.07 in 2021, and 22.64 in 2020. The company's interest coverage ratio fluctuated between 17 and 22 times over this period, indicating a generally healthy financial position regarding its ability to cover interest expenses.
Overall, the trend in Air Products and Chemicals Inc interest coverage ratio demonstrates a strong ability to generate sufficient operating income to meet interest payment obligations, with fluctuations reflecting changes in operational performance and financial management strategies.