Air Products and ChemicalsAPD +0.43%79 Interest Coverage is 15.21 as of Mar. 2026, which is 0% below its 10-year median of 15.25. GuruFocus rates APD with a GF Score™ of 79/100 and a GF Value™ of $283.79 (Fairly Valued). The stock has 5 warning signs investors should review. Among 1,237 Chemicals companies, Air Products and Chemicals ranks better than 54.73% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Air Products and Chemicals's
Operating Income
for the
three
months ended in Mar. 2026 was $753 Mil. Air Products and Chemicals's Interest Expense for the
three
months ended in Mar. 2026 was $-50 Mil.
Air Products and Chemicals's interest coverage for the quarter that ended in Mar. 2026 was 15.21.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Air Products and Chemicals's Interest Coverage or its related term are showing as below:
APD'
s Interest Coverage Range Over the Past 10 Years
Min: 13.27 Med: 15.25 Max: 20.47
Current: 13.27
APD's Interest Coverage is ranked better than 54.73% of 1237
companies
in the Chemicals industry
Industry Median: 10.21
vs APD: 13.27
Air Products and Chemicals (NYSE:APD) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Air Products and Chemicals Interest Coverage Related Terms
Air Products and Chemicals Interest Coverage Historical Data
* 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
Air Products and Chemicals Interest Coverage Chart
APD vs ECL, SHW, PPG: Interest Coverage Comparison
For the Specialty Chemicals subindustry, Air Products and Chemicals's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Air Products and Chemicals Interest Coverage vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Air Products and Chemicals's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Air Products and Chemicals's Interest Coverage falls into.
Air Products and Chemicals Interest Coverage Calculation
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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.
Air Products and Chemicals (APD) has a Interest Coverage of 15.21 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Air Products and Chemicals and its competitors. This is near median its historical median of 15.25. Over the past decade, Air Products and Chemicals' Interest Coverage has ranged from 13.27 to 20.47. According to the industry distribution chart, Air Products and Chemicals ranks #560 out of 1237 companies in the Chemicals industry, placing it in the top 45.3%.
Is Air Products and Chemicals' Interest Coverage too high?
Air Products and Chemicals' current Interest Coverage of 15.21 is near median its 10-year median of 15.25. Over the past 10 years, this metric has ranged from a low of 13.27 to a high of 20.47. The Chemicals industry median Interest Coverage is 10.21. Air Products and Chemicals' value of 15.21 is 49% above this industry median. Based on the distribution chart, Air Products and Chemicals ranks #560 out of 1237 companies in the Chemicals industry, which is above the industry midpoint. Overall, Air Products and Chemicals has a GF Score™ of 79/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Air Products and Chemicals' Interest Coverage compare to ECL and SHW?
According to the Chemicals industry distribution chart, Air Products and Chemicals ranks #560 out of 1237 companies for Interest Coverage. This puts Air Products and Chemicals in the upper half of its industry. The industry median Interest Coverage is 10.21. Air Products and Chemicals' value of 15.21 is 49% above this benchmark. Historically, Air Products and Chemicals' own Interest Coverage has ranged from 13.27 to 20.47 over the past decade. While the company's 10-year median is 15.25 vs. the industry median of 10.21, Air Products and Chemicals has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Chemicals company?
The median Interest Coverage among Chemicals companies is 10.21, based on 1,237 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Air Products and Chemicals's current Interest Coverage of 15.21 is 49% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Air Products and Chemicals and its competitors. For the Chemicals industry, the median Interest Coverage is 10.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Air Products and Chemicals's current Interest Coverage is 15.21, which is near median its own 10-year median of 15.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Air Products and Chemicals stock overvalued right now?
Based on GuruFocus' analysis, Air Products and Chemicals (APD) is currently considered Fairly Valued. The stock's GF Value™ is $283.79, compared to a current price of $279.93 — trading 1.4% below its estimated fair value. The current Interest Coverage is 15.21, which is near median its 10-year median of 15.25 and 49% above the Chemicals industry median of 10.21. Air Products and Chemicals' overall GF Score™ is 79/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Air Products and Chemicals (APD), the current Interest Coverage is 15.21 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Air Products and Chemicals (APD) Overvalued in 2026?
Based on GuruFocus' analysis, Air Products and Chemicals stock appears to be undervalued.
The current stock price of $279.93 is trading 1.4% below its estimated GF Value™ of $283.79.
GuruFocus considers Air Products and Chemicals to be Fairly Valued.
Key valuation signals for APD:
Interest Coverage: 15.21 (near median its 10-year median of 15.25)
GF Value™: $283.79 vs. price of $279.93 (1.4% below fair value)
Industry Position: 49% above the Chemicals median (#560 of 1237)
No single metric tells the full story. See the APD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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 world's largest supplier of hydrogen and helium. It has a unique portfolio serving customers across industries, including chemicals, energy, healthcare, metals, and electronics. Air Products generated roughly $12 billion in revenue in fiscal 2025.
79GF Score
Get the complete analysis for APD
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
APD has been successfully added to your 
