Air Products and Chemicals Inc (APD)
Solvency ratios
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets 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 |
| Debt-to-capital 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 |
| 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 |
| Financial leverage ratio | 2.32 | 2.45 | 2.41 | 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 |
Based on the solvency ratios of Air Products and Chemicals Inc over the past few quarters, it is evident that the company has maintained a consistently low debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio, all registering at 0.00 across the board. This indicates that the company operates with minimal debt relative to its assets, capital, and equity.
However, the financial leverage ratio has fluctuated over the quarters, with values ranging from 1.70 to 2.45. The financial leverage ratio provides insight into the company's level of financial risk and leverage employed in its operations. The increase in the financial leverage ratio from 1.70 to 2.45 over the quarters suggests that the company has been utilizing more debt to finance its operations, potentially increasing its financial risk.
Overall, while Air Products and Chemicals Inc has maintained a strong solvency position with minimal debt relative to its assets and equity, the trend of increasing financial leverage ratio warrants closer monitoring to ensure that the company maintains a healthy balance between debt and equity in its capital structure.
Coverage ratios
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 21.59 | 14.71 | 15.51 | 16.21 | 17.06 | 17.78 | 19.33 | 21.13 | 22.54 | 22.56 | 21.47 | 20.47 | 19.07 | 17.35 | 17.19 | 19.58 | 22.64 | 25.08 | 24.99 | 20.91 |
The interest coverage ratio for Air Products and Chemicals Inc has exhibited a generally strong and stable trend over the past few years, reflecting the company's ability to comfortably meet its interest obligations with its operating income.
The interest coverage ratio has ranged from a low of 14.71 in June 2024 to a high of 25.08 in March 2020. The ratio has remained consistently above 15 in recent years, indicating that the company generates more than enough operating income to cover its interest expenses.
Additionally, the trend shows that the interest coverage ratio has been consistently above 20 since September 2021, indicating a high level of financial strength and stability. This suggests that Air Products and Chemicals Inc has a healthy balance between its earning power and its debt obligations, which is typically viewed favorably by investors and creditors.
Overall, the consistently high and stable interest coverage ratio of Air Products and Chemicals Inc demonstrates the company's strong financial position and its ability to manage its debt effectively.
See also:
Air Products and Chemicals Inc Solvency Ratios (Quarterly Data)