Air Products and Chemicals Inc (APD)

Financial leverage 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
Total assets	US$ in thousands	34,118,200	32,002,500	30,929,500	29,435,400	28,278,300	27,192,600	27,489,000	27,449,700	27,125,300	26,859,200	26,252,100	26,158,900	26,088,100	25,168,500	24,782,100	19,501,200	19,651,600	18,942,800	19,531,900	19,244,500
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
Financial leverage ratio		2.29	2.24	2.19	2.09	2.03	2.07	2.01	1.97	1.96	1.98	2.01	2.06	2.06	2.08	2.13	1.71	1.70	1.71	1.72	1.72

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $34,118,200K ÷ $14,873,000K
= 2.29

The financial leverage ratio of Air Products & Chemicals Inc. has been fluctuating over the past few quarters.

In Q1 2023, the ratio was at 2.03, representing a moderate level of financial leverage. However, this ratio increased steadily throughout the following quarters, reaching a peak of 2.29 in Q1 2024. This indicates a higher level of financial leverage, suggesting that the company is utilizing more debt in its capital structure.

The significant increase in the financial leverage ratio from Q1 2023 to Q1 2024 could imply that Air Products & Chemicals Inc. has been taking on more debt to finance its operations or investments during this period. While a higher leverage ratio can amplify returns when operations are successful, it also increases financial risk due to higher interest payments and debt obligations.

It is essential for investors and creditors to closely monitor Air Products & Chemicals Inc.'s financial leverage ratio to assess the company's solvency and risk profile. A consistently high or increasing ratio may signal potential financial distress, while a decreasing trend could indicate improved financial stability.