Air Products and Chemicals Inc (APD)

Debt-to-equity ratio

		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
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
Debt-to-equity ratio		0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $14,873,000K
= 0.00

The debt-to-equity ratio of Air Products & Chemicals Inc. has shown an increasing trend over the past few quarters. Starting from a relatively low ratio of 0.53 in Q2 2022, the ratio has steadily increased to 0.81 in Q1 2024. This suggests that the company has been relying more on debt financing compared to equity financing to support its operations and growth.

A higher debt-to-equity ratio indicates that the company is more leveraged, with a greater proportion of its funding coming from debt. While this can amplify returns during favorable economic conditions, it also exposes the company to higher financial risk, especially during downturns or in the face of rising interest rates.

It is important for investors and stakeholders to monitor the trend of the debt-to-equity ratio closely, as a continuous increase may signal potential liquidity challenges or financial distress in the future. Additionally, a high ratio could also affect the company's credit rating and borrowing costs.