Air Products and Chemicals Inc (APD)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 | 2.29 | 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 |
Air Products & Chemicals Inc.'s solvency ratios indicate the firm's ability to meet its long-term financial obligations. The debt-to-assets ratio has been relatively stable around 0.30 to 0.35, indicating that roughly 30% to 35% of the company's total assets are financed by debt.
The debt-to-capital ratio has followed a similar trend, staying between 0.35 and 0.45, suggesting that debt comprises around 35% to 45% of the company's total capital structure. This indicates a moderate level of leverage for the company.
The debt-to-equity ratio has shown a gradual increase from 0.53 to 0.81 over the recent quarters, indicating that the company has been relying more on debt financing relative to equity. This trend suggests that the company may be taking on more debt to fuel its growth or operations.
Lastly, the financial leverage ratio has also seen an increase from 1.97 to 2.29, suggesting that the firm's financial risk has increased over the periods analyzed. This ratio indicates that the company's assets are financed more through debt than equity, which can increase the financial risk for the company.
Overall, while the company's solvency ratios indicate a manageable level of debt financing, the increasing trend in some of these ratios suggests that the company may need to closely monitor its debt levels to ensure long-term financial stability.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 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 | 17.35 | 15.95 | 15.77 |
Air Products & Chemicals Inc. has shown a consistent and strong interest coverage ratio over the past eight quarters, ranging from 17.81 to 22.17. This indicates that the company has been able to comfortably meet its interest obligations from its operating income. The trend shows a slight decline in the interest coverage ratio over the last two quarters, moving from 21.26 in Q1 2023 to 17.81 in Q1 2024. However, the current ratio of 17.81 still remains at a healthy level, reflecting the company's ability to generate sufficient earnings to cover its interest expenses. Overall, the company's interest coverage ratios suggest a solid financial position and the ability to manage its debt obligations effectively.
See also:
Air Products and Chemicals Inc Solvency Ratios (Quarterly Data)