Balance Sheet: Liabilities and Stockholders’ Equity

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

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

US$ in millions

	Dec 31, 2025	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Accounts payable	2,810)	2,507)	3,020)	2,995)	3,503)
Short-term debt	4,510)	4,223)	4,713)	4,117)	1,163)
Current portion of long-term debt	1,796)	2,057)	1,263)	1,599)	1,709)
Contract liabilities	1,231)	1,194)	1,901)	3,073)	2,940)
Accrued taxes	680)	637)	664)	613)	429)
Accrued expenses	1,278)	1,321)	1,494)	1,533)	1,248)
Payroll	649)	618)	678)	614)	710)
VAT payable	342)	256)	253)	259)	295)
Pension and postretirement	41)	37)	31)	51)	38)
Interest payable	310)	227)	129)	118)	102)
Current operating lease liabilities	199)	176)	177)	181)	215)
Current finance lease liabilities	62)	54)	50)	42)	47)
Insurance reserves	21)	20)	21)	19)	19)
Unrealized losses on derivatives	72)	92)	41)	23)	27)
Contingent liabilities	128)	167)	—)	—)	—)
Cost reduction programs and other charges	255)	175)	146)	187)	200)
Other	814)	783)	1,136)	1,055)	998)
Other current liabilities	4,171)	3,926)	4,156)	4,082)	3,899)
Current liabilities	15,198)	14,544)	15,717)	16,479)	13,643)
Long-term debt, excluding current portion	20,683)	15,343)	13,397)	12,198)	11,335)
Pension and postretirement	473)	519)	693)	640)	1,802)
Tax liabilities for uncertain tax positions	230)	210)	216)	248)	302)
Tax Act liabilities	—)	—)	80)	139)	178)
Long-term operating lease liabilities	667)	606)	572)	540)	618)
Long-term finance lease liabilities	152)	150)	143)	114)	129)
Interest and penalties for uncertain tax positions	19)	16)	14)	35)	40)
Insurance reserves	63)	60)	54)	52)	56)
Asset retirement obligation	318)	305)	305)	305)	305)
Unrealized losses on derivatives	2)	9)	6)	73)	8)
Cost reduction programs and other charges	183)	66)	68)	133)	253)
Contingent liabilities	1,828)	1,646)	1,148)	29)	—)
Other	420)	428)	505)	487)	497)
Other long-term liabilities	4,355)	4,015)	3,804)	2,795)	4,188)
Deferred income taxes	5,556)	5,659)	5,749)	5,886)	6,239)
Contract liabilities	1,284)	1,098)	1,049)	913)	759)
Deferred credits	6,840)	6,757)	6,798)	6,799)	6,998)
Long-term liabilities	31,878)	26,115)	23,999)	21,792)	22,521)
Total liabilities	47,076)	40,659)	39,716)	38,271)	36,164)
Redeemable noncontrolling interests	13)	13)	13)	13)	13)
Ordinary shares, €0.001 par value	1)	1)	1)	1)	1)
Additional paid-in capital	39,430)	39,603)	39,812)	40,005)	40,180)
Retained earnings	16,608)	12,634)	8,845)	20,541)	18,710)
Accumulated other comprehensive loss	(6,233)	(6,894)	(5,805)	(5,782)	(5,048)
Treasury shares, at cost	(11,561)	(7,252)	(3,133)	(14,737)	(9,808)
Total Linde plc shareholders’ equity	38,245)	38,092)	39,720)	40,028)	44,035)
Noncontrolling interests	1,483)	1,383)	1,362)	1,346)	1,393)
Total equity	39,728)	39,475)	41,082)	41,374)	45,428)
Total liabilities and equity	86,817)	80,147)	80,811)	79,658)	81,605)

Based on: 10-K (reporting date: 2025-12-31), 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).

Overall, the company’s total liabilities and equity experienced fluctuations between 2021 and 2025, with a notable increase in total liabilities, particularly towards the end of the period. While total equity decreased initially, it stabilized in later years. A more detailed examination of specific liability and equity components reveals several key trends.

Current Liabilities: Current liabilities demonstrated volatility throughout the period, peaking in 2022 at US$16,479 million before decreasing to US$14,544 million in 2024, and then increasing again to US$15,198 million in 2025. Accounts payable remained relatively stable, fluctuating between US$2,507 million and US$3,503 million. A significant increase in short-term debt was observed between 2021 and 2023, followed by a slight decrease in 2024 and a further increase in 2025. Contract liabilities experienced a substantial decline from 2022 to 2024, before a modest recovery in 2025. Other current liabilities remained consistently high, fluctuating around US$4,000 million.
Long-Term Liabilities: Long-term liabilities generally increased over the five-year period, rising from US$22,521 million in 2021 to US$31,878 million in 2025. Long-term debt, excluding the current portion, exhibited a consistent upward trend, nearly doubling from US$11,335 million to US$20,683 million. Deferred income taxes remained relatively stable, fluctuating between US$5,556 million and US$6,239 million. Contingent liabilities were not reported in the earlier years but increased significantly in 2024 and 2025, reaching US$1,828 million.
Shareholders’ Equity: Total Linde plc shareholders’ equity decreased from US$44,035 million in 2021 to US$38,092 million in 2024, before a slight increase to US$38,245 million in 2025. Additional paid-in capital experienced a gradual decline throughout the period. Retained earnings decreased substantially from 2021 to 2023, then increased in 2024 and 2025, but did not return to the 2021 level. Accumulated other comprehensive loss consistently increased, becoming more negative over time. Treasury shares increased significantly in absolute value (negative equity) between 2021 and 2025.
Specific Liability Items: Interest payable showed a consistent increase over the period, rising from US$102 million to US$310 million, likely reflecting increased borrowing. Unrealized losses on derivatives also increased, particularly in 2024, suggesting potential exposure to derivative market fluctuations. Cost reduction programs and other charges remained relatively stable, with a slight increase in 2025.

In conclusion, the company experienced a growing reliance on debt financing, as evidenced by the increase in both short-term and long-term liabilities. While equity experienced a period of decline, it stabilized in the most recent year. The increasing levels of contingent liabilities and interest payable warrant further investigation.

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Linde plc (NASDAQ:LIN)

Balance Sheet: Liabilities and Stockholders’ Equity