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Air Products and Chemicals, Inc(APD)

F

Financial data as of Sep 30, 2025Improving · Materials

FCF Margin-31.3%Free Cash Flow / Revenue
Cash Conversion—Operating CF / Net Income
Free Cash Flow-$3.8B
Revenue$12.0B
Net Cash-$16.6BNet debt position
Debt / FCFN/AElevated debt burden
Current Ratio1.38Adequate short-term liquidity
YoY FCF Growth+73.2%0 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseF
→
-1Negative FCF in 4 of last 4 quarters
→
+1Strong YoY FCF growth (73.2% YoY)
→
-1Only 0 positive quarters recently
→
FinalF

Analysis Summary

Strengths

  • Strong YoY FCF growth (+73.2%)
  • FCF trend is improving

Concerns

  • Negative FCF margin (-31.3%)
  • Net debt position ($16.6B)
  • Only 0 positive FCF quarters recently
Heavy CapEx — Operating cash flow is strong (27% margin) but most is reinvestedCash conversion ratio unavailable or not meaningful

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin-31.3%
Net Margin-3.3%
Operating CF Margin27.1%
CapEx Ratio58.3%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$16.6BNet debt position
Debt / FCFN/AElevated debt burden
Current Ratio1.38Adequate liquidity
Debt / Equity1.23Moderate leverage

Quarterly FCF Trend

+73.2% YoYImproving (+73.2%)

Free cash flow per quarter

Sector Comparison — Materials

FCF Margin ranked against sector peers

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Detailed Metrics

Company NameAir Products and Chemicals, Inc
SectorMaterials
Free Cash Flow-$3.8B
Revenue$12.0B
Net Income-$394.5M
Operating Cash Flow$3.3B
Capital Expenditure$7.0B
FCF Margin-31.3%
Cash Conversion Rate—
Net Margin-3.3%
Total Debt$18.4B
Total Cash$1.9B
Net Cash-$16.6B
Current Ratio1.38
Debt / Equity1.23
Debt / FCFN/A
YoY FCF Growth+73.2%
Positive Quarters0 of 5
Trend DirectionImproving
Report DateSep 30, 2025
GradeF
Data SourceYahoo Finance

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