Stock Analysis on Net
Stock Analysis on Net

Linde plc (NASDAQ:LIN)

Common-Size Balance Sheet: Liabilities and Stockholders’ Equity 

Linde plc, common-size consolidated balance sheet: liabilities and stockholders’ equity

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Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Accounts payable 3.13 3.74 3.76 4.29 3.51
Short-term debt 5.27 5.83 5.17 1.43 3.68
Current portion of long-term debt 2.57 1.56 2.01 2.09 0.85
Contract liabilities 1.49 2.35 3.86 3.60 2.01
Accrued taxes 0.79 0.82 0.77 0.53 0.61
Accrued expenses 1.65 1.85 1.92 1.53 1.39
Payroll 0.77 0.84 0.77 0.87 0.74
VAT payable 0.32 0.31 0.33 0.36 0.38
Pension and postretirement 0.05 0.04 0.06 0.05 0.04
Interest payable 0.28 0.16 0.15 0.12 0.15
Current operating lease liabilities 0.22 0.22 0.23 0.26 0.27
Current finance lease liabilities 0.07 0.06 0.05 0.06 0.04
Insurance reserves 0.02 0.03 0.02 0.02 0.04
Unrealized losses on derivatives 0.11 0.05 0.03 0.03 0.08
Noncontrolling interest redemption and dividend 0.00 0.00 0.00 0.00 0.26
Cost reduction programs and other charges 0.22 0.18 0.23 0.25 0.23
Other 1.19 1.41 1.32 1.22 1.29
Other current liabilities 4.90% 5.14% 5.12% 4.78% 4.91%
Current liabilities 18.15% 19.45% 20.69% 16.72% 15.57%
Long-term debt, excluding current portion 19.14 16.58 15.31 13.89 13.77
Pension and postretirement 0.65 0.86 0.80 2.21 3.36
Tax liabilities for uncertain tax positions 0.26 0.27 0.31 0.37 0.40
Tax Act liabilities 0.00 0.10 0.17 0.22 0.23
Long-term operating lease liabilities 0.76 0.71 0.68 0.76 0.76
Long-term finance lease liabilities 0.19 0.18 0.14 0.16 0.14
Interest and penalties for uncertain tax positions 0.02 0.02 0.04 0.05 0.11
Insurance reserves 0.07 0.07 0.07 0.07 0.04
Asset retirement obligation 0.38 0.38 0.38 0.37 0.34
Unrealized losses on derivatives 0.01 0.01 0.09 0.01 0.01
Cost reduction programs and other charges 0.08 0.08 0.17 0.31 0.19
Contingent liabilities 2.05 1.42 0.04 0.00 0.00
Other 0.53 0.62 0.61 0.61 0.67
Other long-term liabilities 5.01% 4.71% 3.51% 5.13% 6.26%
Deferred income taxes 7.06 7.11 7.39 7.65 7.60
Contract liabilities 1.37 1.30 1.15 0.93 0.60
Deferred credits 8.43% 8.41% 8.54% 8.58% 8.20%
Long-term liabilities 32.58% 29.70% 27.36% 27.60% 28.23%
Total liabilities 50.73% 49.15% 48.04% 44.32% 43.80%
Redeemable noncontrolling interests 0.02 0.02 0.02 0.02 0.01
Ordinary shares, €0.001 par value 0.00 0.00 0.00 0.00 0.00
Additional paid-in capital 49.41 49.27 50.22 49.24 45.57
Retained earnings 15.76 10.95 25.79 22.93 19.47
Accumulated other comprehensive loss -8.60 -7.18 -7.26 -6.19 -5.32
Treasury shares, at cost -9.05 -3.88 -18.50 -12.02 -6.09
Total Linde plc shareholders’ equity 47.53% 49.15% 50.25% 53.96% 53.63%
Noncontrolling interests 1.73 1.69 1.69 1.71 2.55
Total equity 49.25% 50.84% 51.94% 55.67% 56.18%
Total liabilities and equity 100.00% 100.00% 100.00% 100.00% 100.00%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

Short-term liabilities
Short-term liabilities, expressed as a percentage of total liabilities and equity, showed a general upward trend from 15.57% in 2020 to a peak of 20.69% in 2022, then decreased to 18.15% by 2024. Notably, the share of short-term debt exhibited significant volatility, dropping sharply in 2021 to 1.43%, then rising substantially to a peak of 5.83% in 2023 before slightly declining to 5.27% in 2024. Accounts payable decreased from 4.29% in 2021 to 3.13% in 2024, suggesting some reduction in operational payables. Contract liabilities also declined notably after 2022, reflecting a possible decrease in advance payments or customer obligations. Accrued expenses increased steadily until 2022 and then tapered, while accrued taxes and payroll liabilities remained relatively stable.
Long-term liabilities
Long-term liabilities increased consistently over the period, from 28.23% in 2020 to 32.58% in 2024. This rise was mainly driven by growth in long-term debt (excluding current portion), which increased markedly from 13.77% to 19.14%. Conversely, pension and postretirement liabilities decreased substantially from 3.36% to 0.65%, indicating a possible reduction in future benefit obligations. Deferred income taxes and deferred credits showed minor decreases, while contingent liabilities emerged in 2022 and grew notably by 2024, suggesting increased exposure to potential obligations. Other long-term liabilities fluctuated but were generally lower in 2022 before increasing toward 2024.
Total liabilities
The overall proportion of total liabilities relative to liabilities and equity rose steadily across the five years, from 43.8% in 2020 to 50.73% in 2024. This reflects a gradual increase in the company's leverage or financial obligations over time, with both current and long-term liabilities contributing to this increment.
Shareholders’ equity
The shareholders' equity as a percentage of total liabilities and equity declined from 53.63% in 2020 to 47.53% in 2024. This decline was accompanied by a notable reduction in retained earnings, which dropped sharply after 2022 from 25.79% to 15.76%, suggesting possible distribution of profits, losses, or adjustments affecting earnings retention. Accumulated other comprehensive loss increased in absolute terms (becoming more negative), indicating greater unrealized losses or adverse changes in comprehensive income components. Treasury shares increased significantly in cost percentage in 2022 before partially reversing, reflecting changes in share buybacks or retirements. Additional paid-in capital remained relatively stable, with a slight increase peaking in 2022 and marginally declining thereafter.
Equity and liability composition trends
The overall composition shows a gradual shift toward higher liabilities relative to equity. Declines in pension and postretirement obligations suggest possible liability management or benefit plan changes. The increase in contingent liabilities may point to heightened risk exposure or litigations arising. The fluctuations in treasury shares and retained earnings imply active capital management and profit distribution policies. The steady portion of deferred income taxes and deferred credits suggests relative stability in deferred tax and income recognition positions.
Other observations
Several minor liabilities and expense categories such as interest payable, accrued expenses, and contract liabilities showed moderate variability, reflecting operational and financing activities over time. Lease liabilities (both operating and finance) remained relatively constant as a small percentage of total liabilities and equity. Unrealized losses on derivatives remained low though with a slight increase in certain years, indicating limited impact from derivative revaluation. Overall, the financial structure points to cautious leverage growth combined with managed equity adjustments and evolving contingent liabilities.