Air Products and Chemicals Inc (APD)

Debt-to-equity ratio

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
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
Debt-to-equity ratio		0.00	0.00	0.00	0.00	0.00

September 30, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $14,312,900K
= 0.00

The debt-to-equity ratio of Air Products & Chemicals Inc. has exhibited fluctuations over the past five years. As of September 30, 2023, the ratio stood at 0.72, representing an increase from the previous year. This indicates that the company's reliance on debt as a source of financing relative to shareholders' equity has grown.

The higher ratio may suggest increased financial risk and potential vulnerability to economic downturns or rising interest rates. However, it could also indicate a strategic decision to capitalize on low borrowing costs to finance expansion or investment opportunities.

It is noteworthy that the ratio has shown an overall upward trend since 2019, reflecting a shift towards greater leverage in the company's capital structure. This trend amplifies the importance of closely monitoring the company's ability to service its debt obligations and manage the associated risks.