Air Products Operating Margin vs. Return On Asset
| APD Stock | USD 250.26 0.29 0.12% |
Air Products Operating Profit Margin |
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| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.39 | 0.34 |
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| Net Profit Margin | 0.088 | 0.16 |
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| Operating Profit Margin | 0.12 | 0.18 |
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| Pretax Profit Margin | 0.11 | 0.21 |
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| Return On Assets | 0.0515 | 0.0647 |
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| Return On Equity | 0.12 | 0.14 |
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For Air Products profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Air Products to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Air Products and utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Air Products's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Air Products and over time as well as its relative position and ranking within its peers.
Air |
Air Products' Revenue Breakdown by Earning Segment
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Is Air Products' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Air Products. If investors know Air will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Air Products listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.305 | Dividend Share 7.02 | Earnings Share 11.05 | Revenue Per Share 54.644 | Quarterly Revenue Growth (0.08) |
The market value of Air Products is measured differently than its book value, which is the value of Air that is recorded on the company's balance sheet. Investors also form their own opinion of Air Products' value that differs from its market value or its book value, called intrinsic value, which is Air Products' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Air Products' market value can be influenced by many factors that don't directly affect Air Products' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Air Products' value and its price as these two are different measures arrived at by different means. Investors typically determine if Air Products is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Air Products' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Air Products Return On Asset vs. Operating Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Air Products's current stock value. Our valuation model uses many indicators to compare Air Products value to that of its competitors to determine the firm's financial worth. Air Products and is number one stock in operating margin category among related companies. It is rated below average in return on asset category among related companies reporting about 0.23 of Return On Asset per Operating Margin. The ratio of Operating Margin to Return On Asset for Air Products and is roughly 4.39 . At present, Air Products' Operating Profit Margin is projected to increase slightly based on the last few years of reporting.Comparative valuation analysis is a catch-all model that can be used if you cannot value Air Products by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Air Products' Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Air Products' earnings, one of the primary drivers of an investment's value.Air Products' Earnings Breakdown by Geography
Air Return On Asset vs. Operating Margin
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
Air Products |
| = | 0.23 % |
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
Air Products |
| = | 0.0518 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Air Return On Asset Comparison
Air Products is currently under evaluation in return on asset category among related companies.
Air Products Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Air Products, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Air Products will eventually generate negative long term returns. The profitability progress is the general direction of Air Products' change in net profit over the period of time. It can combine multiple indicators of Air Products, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | 89.4 M | 93.8 M | |
| Operating Income | 2.9 B | 3 B | |
| Income Before Tax | 3.3 B | 3.5 B | |
| Total Other Income Expense Net | 368.8 M | 387.2 M | |
| Net Income | 2.6 B | 2.8 B | |
| Income Tax Expense | 633.9 M | 665.6 M | |
| Net Income Applicable To Common Shares | 2.6 B | 2.8 B | |
| Net Income From Continuing Ops | 2.7 B | 1.8 B | |
| Non Operating Income Net Other | 625.5 M | 656.8 M | |
| Interest Income | 490.8 M | 515.4 M | |
| Net Interest Income | -159.8 M | -167.7 M | |
| Change To Netincome | -24.7 M | -23.4 M | |
| Net Income Per Share | 9.31 | 9.78 | |
| Income Quality | 1.61 | 2.40 | |
| Net Income Per E B T | 0.72 | 0.60 |
Air Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Air Products. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Air Products position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Air Products' important profitability drivers and their relationship over time.
Use Air Products in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Air Products position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Air Products will appreciate offsetting losses from the drop in the long position's value.Air Products Pair Trading
Air Products and Pair Trading Analysis
The ability to find closely correlated positions to Air Products could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Air Products when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Air Products - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Air Products and to buy it.
The correlation of Air Products is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Air Products moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Air Products moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Air Products can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Air Products position
In addition to having Air Products in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Machinery Thematic Idea Now
Machinery
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Machinery theme has 61 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Machinery Theme or any other thematic opportunities.
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When running Air Products' price analysis, check to measure Air Products' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Air Products is operating at the current time. Most of Air Products' value examination focuses on studying past and present price action to predict the probability of Air Products' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Air Products' price. Additionally, you may evaluate how the addition of Air Products to your portfolios can decrease your overall portfolio volatility.
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To fully project Air Products' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Air Products at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Air Products' income statement, its balance sheet, and the statement of cash flows.