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APD (Air Products & Chemicals) Gross Margin % : 32.82% (As of Jun. 2024)


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What is Air Products & Chemicals Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Air Products & Chemicals's Gross Profit for the three months ended in Jun. 2024 was $980 Mil. Air Products & Chemicals's Revenue for the three months ended in Jun. 2024 was $2,986 Mil. Therefore, Air Products & Chemicals's Gross Margin % for the quarter that ended in Jun. 2024 was 32.82%.

Warning Sign:

Air Products & Chemicals Inc gross margin has been in long-term decline. The average rate of decline per year is -2.5%.


The historical rank and industry rank for Air Products & Chemicals's Gross Margin % or its related term are showing as below:

APD' s Gross Margin % Range Over the Past 10 Years
Min: 26.46   Med: 30.15   Max: 33.85
Current: 31.67


During the past 13 years, the highest Gross Margin % of Air Products & Chemicals was 33.85%. The lowest was 26.46%. And the median was 30.15%.

APD's Gross Margin % is ranked better than
72.17% of 1513 companies
in the Chemicals industry
Industry Median: 21.85 vs APD: 31.67

Air Products & Chemicals had a gross margin of 32.82% for the quarter that ended in Jun. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Air Products & Chemicals was -2.50% per year.


Air Products & Chemicals Gross Margin % Historical Data

The historical data trend for Air Products & Chemicals's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Air Products & Chemicals Gross Margin % Chart

Air Products & Chemicals Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 33.00 33.85 30.39 26.46 29.90

Air Products & Chemicals Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 31.75 30.84 31.03 32.04 32.82

Competitive Comparison of Air Products & Chemicals's Gross Margin %

For the Specialty Chemicals subindustry, Air Products & Chemicals's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Air Products & Chemicals's Gross Margin % Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Air Products & Chemicals's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Air Products & Chemicals's Gross Margin % falls into.



Air Products & Chemicals Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Air Products & Chemicals's Gross Margin for the fiscal year that ended in Sep. 2023 is calculated as

Gross Margin % (A: Sep. 2023 )=Gross Profit (A: Sep. 2023 ) / Revenue (A: Sep. 2023 )
=3767 / 12600
=(Revenue - Cost of Goods Sold) / Revenue
=(12600 - 8833) / 12600
=29.90 %

Air Products & Chemicals's Gross Margin for the quarter that ended in Jun. 2024 is calculated as


Gross Margin % (Q: Jun. 2024 )=Gross Profit (Q: Jun. 2024 ) / Revenue (Q: Jun. 2024 )
=979.9 / 2985.5
=(Revenue - Cost of Goods Sold) / Revenue
=(2985.5 - 2005.6) / 2985.5
=32.82 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


Air Products & Chemicals  (NYSE:APD) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Air Products & Chemicals had a gross margin of 32.82% for the quarter that ended in Jun. 2024 => Competition eroding margins


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


Air Products & Chemicals Gross Margin % Related Terms

Thank you for viewing the detailed overview of Air Products & Chemicals's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Air Products & Chemicals Business Description

Address
1940 Air Products Boulevard, Allentown, PA, USA, 18106-5500
Since its founding in 1940, Air Products has become one of the leading industrial gas suppliers globally, with operations in 50 countries and 19,000 employees. The company is the largest supplier of hydrogen and helium in the world. It has a unique portfolio serving customers in a number of industries, including chemicals, energy, healthcare, metals, and electronics. Air Products generated $12.6 billion in revenue in fiscal 2023.
Executives
Jeffrey Kutz officer: VP, Controller & PAO 1940 AIR PRODUCTS BLVD., ALLENTOWN PA 18106-5500
Seifi Ghasemi director 100 OVERLOOK CENTER, PRINCETON NJ 08540
Sean D Major officer: Executive VP & General Counsel 100 E. WISCONSIN AVENUE, SUITE 2780, MILWAUKEE WI 53202
Tonit M Calaway director HARLEY-DAVIDSON MOTOR COMPANY, 3700 WEST JUNEAU AVENUE, MILWAUKEE WI 53208
Wayne Thomas Smith director 1940 AIR PRODUCTS BLVD., ALLENTOWN PA 18106
Melissa N. Schaeffer officer: Senior Vice President and CFO 1940 AIR PRODUCTS BLVD., ALLENTOWN PA 18106
Edward L Monser director
Lisa Ann Davis director 2555 TELEGRAPH RD, BLOOMFIELD HILLS MI 48302
Russell A Flugel officer: Chief Accounting Officer C/O THE MOSAIC COMPANY, 101 EAST KENNEDY BLVD., SUITE 2500, TAMPA FL 33602
Charles I Cogut director 7201 HAMILTON BOULEVARD, ALLENTOWN PA 18195
Samir Serhan officer: Executive Vice President 7201 HAMILTON BLVD., ALLENTOWN PA 18195
Jennifer Grant officer: VP 7201 HAMILTON BLVD, ALLENTOWN PA 18195
John D. Stanley officer: SR VP and General Counsel 7201 HAMILTON BOULEVARD, ALLENTOWN PA 18195-1501
Guillermo Novo officer: Senior V.P. AIR PRODUCTS AND CHEMICALS, INC., 7201 HAMILTON BOULEVARD, ALLENTOWN PA 18195
Painter Corning F. officer: Senior V.P. 7201 HAMILTON BOULEVARD, ALLENTOWN PA 18195-1501