Air Products & Chemicals (FRA:AP3) ROCE % : 10.86% (As of Dec. 2023)

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What is Air Products & Chemicals ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Air Products & Chemicals's annualized ROCE % for the quarter that ended in Dec. 2023 was 10.86%.

Air Products & Chemicals ROCE % Historical Data

The historical data trend for Air Products & Chemicals's ROCE % 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.

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Air Products & Chemicals ROCE % Chart

Air Products & Chemicals Annual Data

Trend

Sep14

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

ROCE %

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14.70

12.34

11.32

13.11

11.40

Air Products & Chemicals Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROCE %	Get a 7-Day Free Trial															12.09	9.43	11.83	13.01	10.86

Air Products & Chemicals ROCE % Calculation

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

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Sep. 2023 )		(A: Sep. 2022 )		(A: Sep. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Sep. 2023 )		(A: Sep. 2022 )		(A: Sep. 2023 )
	=	2867.126	/	( ( (27464.526 - 3500.458)	+	(29986.343 - 3650.365) )	/ 2 )
	=	2867.126	/	( (23964.068	+	26335.978)	/ 2 )
	=	2867.126	/	25150.023
	=	11.40 %

Air Products & Chemicals's ROCE % of for the quarter that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	2972.912	/	( ( (29986.343 - 3650.365)	+	(31286.389 - 2860.306) )	/ 2 )
	=	2972.912	/	( ( 26335.978	+	28426.083 )	/ 2 )
	=	2972.912	/	27381.0305
	=	10.86 %

(1) Note: The EBIT data used here is four times the quarterly (Dec. 2023) EBIT data.

Air Products & Chemicals (FRA:AP3) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Air Products & Chemicals ROCE % Related Terms

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Air Products & Chemicals (FRA:AP3) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Air Products & Chemicals Inc (FRA:AP3) » Definitions » ROCE %

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APD:USA 1APD:Italy AP3:Germany A1PD34:Brazil APCD:Austria

Address

1940 Air Products Boulevard, Allentown, PA, USA, 18106-5500

Website

https://www.airproducts.com

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.

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