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APD (Air Products & Chemicals) Altman Z-Score : 3.39 (As of Oct. 31, 2024)


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What is Air Products & Chemicals Altman Z-Score?

The Altman Z-Score is a model designed to predict the likelihood of a company going bankrupt within the next two years. Created by American finance professor Edward Altman in 1968, the model is specifically designed for publicly traded manufacturing companies with assets greater than $1 million.

Good Sign:

Altman Z-score of 3.41 is strong.

Air Products & Chemicals has a Altman Z-Score of 3.39, indicating it is in Safe Zones. This implies the Altman Z-Score is strong.

The zones of discrimination were as such:

When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.

The historical rank and industry rank for Air Products & Chemicals's Altman Z-Score or its related term are showing as below:

APD' s Altman Z-Score Range Over the Past 10 Years
Min: 3.04   Med: 4.28   Max: 6.11
Current: 3.41

During the past 13 years, Air Products & Chemicals's highest Altman Z-Score was 6.11. The lowest was 3.04. And the median was 4.28.


Air Products & Chemicals Altman Z-Score Historical Data

The historical data trend for Air Products & Chemicals's Altman Z-Score 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 Altman Z-Score Chart

Air Products & Chemicals Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Altman Z-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.00 4.91 4.44 4.09 3.83

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
Altman Z-Score 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 4.12 3.83 3.50 3.04 3.05

Competitive Comparison of Air Products & Chemicals's Altman Z-Score

For the Specialty Chemicals subindustry, Air Products & Chemicals's Altman Z-Score, along with its competitors' market caps and Altman Z-Score 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 Altman Z-Score Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Air Products & Chemicals's Altman Z-Score distribution charts can be found below:

* The bar in red indicates where Air Products & Chemicals's Altman Z-Score falls into.



Air Products & Chemicals Altman Z-Score Calculation

Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

Air Products & Chemicals's Altman Z-Score for today is calculated with this formula:

Z=1.2*X1+1.4*X2+3.3*X3+0.6*X4+1.0*X5
=1.2*0.0325+1.4*0.4866+3.3*0.0913+0.6*3.4029+1.0*0.3274
=3.39

* 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. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.

Trailing Twelve Months (TTM) ended in Jun. 2024:
Total Assets was $36,974 Mil.
Total Current Assets was $5,677 Mil.
Total Current Liabilities was $4,475 Mil.
Retained Earnings was $17,990 Mil.
Pre-Tax Income was 849.5 + 711.4 + 757 + 841.2 = $3,159 Mil.
Interest Expense was -55.7 + -59.9 + -53.5 + -48 = $-217 Mil.
Revenue was 2985.5 + 2930.2 + 2997.4 + 3191.3 = $12,104 Mil.
Market Cap (Today) was $69,035 Mil.
Total Liabilities was $20,287 Mil.

* Note that for stock reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data.

X1=Working Capital/Total Assets
=(Total Current Assets - Total Current Liabilities)/Total Assets
=(5677.4 - 4474.5)/36974.3
=0.0325

X2=Retained Earnings/Total Assets
=17989.9/36974.3
=0.4866

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(3159.1 - -217.1)/36974.3
=0.0913

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=69035.323/20287.3
=3.4029

X5=Revenue/Total Assets
=12104.4/36974.3
=0.3274

The zones of discrimination were as such:

Distress Zones - 1.81 < Grey Zones < 2.99 - Safe Zones

Air Products & Chemicals has a Altman Z-Score of 3.39 indicating it is in Safe Zones.

Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.


Air Products & Chemicals  (NYSE:APD) Altman Z-Score Explanation

X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.

X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.

X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.

X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.

X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.

Read more about Altman Z-Score and the original research.


Be Aware

Altman Z-Score does not apply to financial companies.


Air Products & Chemicals Altman Z-Score 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