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Operating Margin % is calculated as Operating Income divided by its Revenue. Air Products & Chemicals's Operating Income for the three months ended in Jun. 2024 was $738 Mil. Air Products & Chemicals's Revenue for the three months ended in Jun. 2024 was $2,986 Mil. Therefore, Air Products & Chemicals's Operating Margin % for the quarter that ended in Jun. 2024 was 24.71%.
Warning Sign:
Air Products & Chemicals Inc operating margin has been in a 5-year decline. The average rate of decline per year is -2.7%.
The historical rank and industry rank for Air Products & Chemicals's Operating Margin % or its related term are showing as below:
Air Products & Chemicals's 5-Year Average Operating Margin % Growth Rate was -2.70% per year.
Air Products & Chemicals's Operating Income for the three months ended in Jun. 2024 was $738 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2024 was $2,837 Mil.
The historical data trend for Air Products & Chemicals's Operating 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.
Air Products & Chemicals Annual Data | |||||||||||||||||||||
Trend | Sep14 | Sep15 | Sep16 | Sep17 | Sep18 | Sep19 | Sep20 | Sep21 | Sep22 | Sep23 | |||||||||||
Operating Margin % | Get a 7-Day Free Trial | 24.33 | 25.27 | 21.97 | 19.00 | 21.74 |
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 | |
Operating Margin % | Get a 7-Day Free Trial | 23.18 | 23.14 | 22.25 | 23.69 | 24.71 |
For the Specialty Chemicals subindustry, Air Products & Chemicals's Operating Margin %, along with its competitors' market caps and Operating 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.
For the Chemicals industry and Basic Materials sector, Air Products & Chemicals's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Air Products & Chemicals's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Air Products & Chemicals's Operating Margin % for the fiscal year that ended in Sep. 2023 is calculated as
Operating Margin % | = | Operating Income (A: Sep. 2023 ) | / | Revenue (A: Sep. 2023 ) |
= | 2739.2 | / | 12600 | |
= | 21.74 % |
Air Products & Chemicals's Operating Margin % for the quarter that ended in Jun. 2024 is calculated as
Operating Margin % | = | Operating Income (Q: Jun. 2024 ) | / | Revenue (Q: Jun. 2024 ) |
= | 737.6 | / | 2985.5 | |
= | 24.71 % |
* 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.
Air Products & Chemicals (NYSE:APD) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Thank you for viewing the detailed overview of Air Products & Chemicals's Operating Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
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 |
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