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APD (Air Products & Chemicals) ROA % : 7.64% (As of Jun. 2024)


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What is Air Products & Chemicals ROA %?

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Air Products & Chemicals's annualized Net Income for the quarter that ended in Jun. 2024 was $2,786 Mil. Air Products & Chemicals's average Total Assets over the quarter that ended in Jun. 2024 was $36,448 Mil. Therefore, Air Products & Chemicals's annualized ROA % for the quarter that ended in Jun. 2024 was 7.64%.

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

APD' s ROA % Range Over the Past 10 Years
Min: 3.57   Med: 8.02   Max: 16.44
Current: 7.56

During the past 13 years, Air Products & Chemicals's highest ROA % was 16.44%. The lowest was 3.57%. And the median was 8.02%.

APD's ROA % is ranked better than
80.24% of 1569 companies
in the Chemicals industry
Industry Median: 2.97 vs APD: 7.56

Air Products & Chemicals ROA % Historical Data

The historical data trend for Air Products & Chemicals's ROA % 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 ROA % Chart

Air Products & Chemicals Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
ROA %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 9.23 8.55 8.07 8.35 7.77

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
ROA % 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 7.89 8.80 7.37 6.54 7.64

Competitive Comparison of Air Products & Chemicals's ROA %

For the Specialty Chemicals subindustry, Air Products & Chemicals's ROA %, along with its competitors' market caps and ROA % 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 ROA % Distribution in the Chemicals Industry

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

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



Air Products & Chemicals ROA % Calculation

Air Products & Chemicals's annualized ROA % for the fiscal year that ended in Sep. 2023 is calculated as:

ROA %=Net Income (A: Sep. 2023 )/( (Total Assets (A: Sep. 2022 )+Total Assets (A: Sep. 2023 ))/ count )
=2300.2/( (27192.6+32002.5)/ 2 )
=2300.2/29597.55
=7.77 %

Air Products & Chemicals's annualized ROA % for the quarter that ended in Jun. 2024 is calculated as:

ROA %=Net Income (Q: Jun. 2024 )/( (Total Assets (Q: Mar. 2024 )+Total Assets (Q: Jun. 2024 ))/ count )
=2786.4/( (35921.7+36974.3)/ 2 )
=2786.4/36448
=7.64 %

* 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.

In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data, the Net Income data used here is four times the quarterly (Jun. 2024) net income data. ROA % is displayed in the 30-year financial page.


Air Products & Chemicals  (NYSE:APD) ROA % Explanation

ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A bank’s ROA % is typically well under 2%.

Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:

ROA %(Q: Jun. 2024 )
=Net Income/Total Assets
=2786.4/36448
=(Net Income / Revenue)*(Revenue / Total Assets)
=(2786.4 / 11942)*(11942 / 36448)
=Net Margin %*Asset Turnover
=23.33 %*0.3276
=7.64 %

Note: The Net Income data used here is four times the quarterly (Jun. 2024) net income data. The Revenue data used here is four times the quarterly (Jun. 2024) revenue data.

* 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.


Be Aware

Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).

Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.

E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.


Air Products & Chemicals ROA % Related Terms

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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