Air Products and Chemicals, Inc — Earnings Quality Grade F
APD · Basic Materials
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 58 days, change +3 days YoY
AR outpaced revenue for 2 consecutive years
Revenue -0.5%, CFFO -10.7%. Cash follows revenue
Expense Quality
Inventory 1.4% vs COGS 1.1%. Normal
CapEx growth 3.3% vs revenue -0.5%. Normal
SG&A/Gross Profit = 24.0%, excellent (<30%)
Gross margin 31.4%, change -1.1pp. Stable
Cash Flow Quality
CFFO/NI = -8.26. Below 1.0
FCF < 50% of Net Income for 2 years
Accruals ratio = -8.9%. Low accruals
Cash $1.9B covers only 10% of debt $18.4B
Balance Sheet Health
Goodwill+Intangibles $1.3B = 8% of equity. Manageable
Debt/EBITDA = 13.8x (>4x). Financial stress
Other assets -20.1% vs revenue -0.5%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions negative for 3 years
Goodwill+Intangibles change 3% YoY. Normal
Manipulation Score
M-Score = -2.89 (< -2.22). Unlikely manipulator
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-10