ROCE Insights For Air Products & Chemicals

Looking at Q3, Air Products & Chemicals APD earned $1.24 billion, a 160.41% increase from the preceding quarter. Air Products & Chemicals's sales decreased to $2.06 billion, a 6.81% change since Q2. In Q2, Air Products & Chemicals earned $475.60 million, but sales reached $2.22 billion.

What Is ROCE?

Changes in earnings and sales indicate shifts in Air Products & Chemicals’s Return on Capital Employed, a measure of yearly pre-tax profit relative to capital employed in a business. Generally, a higher ROCE suggests successful growth in a company and is a sign of higher earnings per share for shareholders in the future. In Q3, Air Products & Chemicals posted an ROCE of 0.82%.

It is important to keep in mind ROCE evaluates past performance and is not used as a predictive tool. It is a good measure of a company's recent performance, but several factors could affect earnings and sales in the near future.

Return on Capital Employed is an important measurement of efficiency and a useful tool when comparing companies that operate in the same industry. A relatively high ROCE indicates a company may be generating profits that can be reinvested into more capital, leading to higher returns and growing EPS for shareholders. In Air Products & Chemicals's case, the positive ROCE ratio will be something investors pay attention to before making long-term financial decisions.

Q3 Earnings

Air Products & Chemicals reported Q3 earnings per share at $2.01/share against analyst predictions of $1.99/share.