Analysis of Liquidity Ratios
Quarterly Data
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Linde plc, liquidity ratios (quarterly data)
Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
The analysis of liquidity ratios over the reported periods reveals notable fluctuations and trends in the company’s short-term financial health.
- Current ratio
- The current ratio generally demonstrates a pattern of moderate fluctuation within a range roughly between 0.70 and 0.95. It started at 0.74 in March 2020, experienced slight increases and decreases throughout the quarters, and showed a notable upward movement beginning in early 2024, peaking near 0.96 in September 2024 before slightly adjusting downward but maintaining levels above 0.89 by June 2025. This trend indicates an improving ability to cover current liabilities with current assets over time, especially in the latter periods.
- Quick ratio
- The quick ratio follows a similar but slightly less stable trajectory compared to the current ratio. Initial values in 2020 hovered around the 0.54 to 0.64 range, with dips observed in mid-2021 and a gradual increase again from early 2023 onward. From 2024, there is a clear upward trend reaching approximately 0.73 in September 2024 before a slight decline to 0.70 in June 2025. This suggests a progressive strengthening of the company’s near-cash asset position relative to its current liabilities, signaling enhanced liquidity quality.
- Cash ratio
- The cash ratio exhibits more variability and lower absolute values compared to the other liquidity metrics, ranging approximately from 0.21 up to 0.37. There is an observable pattern of fluctuations with periodic rises followed by declines through the timeline. Notably, after a trough of 0.21 in June and December 2020, the ratio recovers and stabilizes somewhat around the 0.30 level in later periods, with a peak near 0.37 in September 2024. This volatility reflects the company's fluctuating cash and cash-equivalent reserves relative to current liabilities, indicating periodic adjustments in immediate liquidity management.
Overall, the data suggests a gradual improvement in liquidity, particularly from early 2023 onward, with the company strengthening its position to meet short-term obligations. The current and quick ratios exhibit clearer upward trends, while the cash ratio remains more variable but generally improving. These developments may point to enhanced operational cash flow management and balance sheet improvements over the observed periods.
Current Ratio
Linde plc, current ratio calculation (quarterly data)
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Current assets | 13,627) | 13,597) | 12,945) | 13,460) | 12,843) | 13,102) | 12,620) | 11,737) | 11,411) | 12,904) | 13,047) | 11,203) | 11,272) | 12,257) | 10,159) | 12,007) | 10,446) | 11,132) | 10,924) | 12,265) | 12,073) | 11,513) | |||||||
| Current liabilities | 14,714) | 14,485) | 14,544) | 14,049) | 13,504) | 14,389) | 15,717) | 14,162) | 14,552) | 17,785) | 16,479) | 15,061) | 15,295) | 14,506) | 13,643) | 14,758) | 14,676) | 15,027) | 13,740) | 14,792) | 15,095) | 15,490) | |||||||
| Liquidity Ratio | |||||||||||||||||||||||||||||
| Current ratio1 | 0.93 | 0.94 | 0.89 | 0.96 | 0.95 | 0.91 | 0.80 | 0.83 | 0.78 | 0.73 | 0.79 | 0.74 | 0.74 | 0.84 | 0.74 | 0.81 | 0.71 | 0.74 | 0.80 | 0.83 | 0.80 | 0.74 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Current Ratio, Competitors2 | |||||||||||||||||||||||||||||
| Sherwin-Williams Co. | 0.78 | 0.77 | 0.79 | 0.83 | 0.81 | 0.78 | 0.83 | 0.94 | 1.00 | 1.00 | 0.99 | 1.00 | 0.87 | 0.88 | 0.88 | 0.83 | 0.84 | 0.90 | 1.00 | 1.19 | 1.09 | 0.94 | |||||||
Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q2 2025 Calculation
Current ratio = Current assets ÷ Current liabilities
= 13,627 ÷ 14,714 = 0.93
2 Click competitor name to see calculations.
- Current Assets
- The current assets exhibit moderate fluctuations over the observed periods. Starting at 11,513 million US dollars in the first quarter of 2020, there is a slight increase reaching a peak of 13,102 million by the first quarter of 2024. Despite occasional decreases, most notably in mid-2023, the general trend points to a gradual increase in liquidity available in the short term.
- Current Liabilities
- Current liabilities show a generally stable but somewhat volatile pattern. Initially at 15,490 million in the first quarter of 2020, liabilities decreased slightly during 2020 but increased significantly by the end of 2022, peaking at 17,785 million. After this peak, liabilities tend to decrease and stabilize around 14,000 to 15,000 million in the following periods, showing no clear upward or downward long-term trend.
- Current Ratio
- The current ratio remains below 1 throughout all periods, indicating that current liabilities consistently exceed current assets. Nonetheless, there is a subtle improvement over time. Starting at 0.74 in the first quarter of 2020, the ratio ascends to a higher range closer to 0.9 by 2024. This upward movement suggests a gradual enhancement in the company’s short-term liquidity position, though it still reflects slightly tight liquidity conditions overall.
- Summary and Insights
- The data indicates a mixed liquidity profile with slight improvements in managing short-term assets relative to liabilities. While current assets have generally increased, current liabilities have fluctuated significantly, peaking notably in late 2022 before decreasing. The current ratio’s improvement signals better short-term financial stability, though the ratio remaining below 1 indicates that there still is an ongoing need for careful working capital management to avoid liquidity risks.
Quick Ratio
Linde plc, quick ratio calculation (quarterly data)
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Cash and cash equivalents | 4,786) | 5,294) | 4,850) | 5,187) | 4,626) | 4,848) | 4,664) | 3,894) | 3,357) | 4,962) | 5,436) | 3,756) | 3,655) | 4,464) | 2,823) | 4,700) | 3,137) | 4,096) | 3,754) | 5,199) | 4,941) | 4,014) | |||||||
| Accounts receivable, net | 5,230) | 4,950) | 4,622) | 4,871) | 5,001) | 5,009) | 4,718) | 4,692) | 4,799) | 4,753) | 4,559) | 4,599) | 4,803) | 4,845) | 4,499) | 4,367) | 4,342) | 4,139) | 4,167) | 4,033) | 3,994) | 4,084) | |||||||
| Contract assets | 260) | 293) | 263) | 255) | 226) | 217) | 196) | 151) | 156) | 175) | 124) | 104) | 78) | 100) | 134) | 166) | 173) | 137) | 162) | 170) | 226) | 311) | |||||||
| Total quick assets | 10,276) | 10,537) | 9,735) | 10,313) | 9,853) | 10,074) | 9,578) | 8,737) | 8,312) | 9,890) | 10,119) | 8,459) | 8,536) | 9,409) | 7,456) | 9,233) | 7,652) | 8,372) | 8,083) | 9,402) | 9,161) | 8,409) | |||||||
| Current liabilities | 14,714) | 14,485) | 14,544) | 14,049) | 13,504) | 14,389) | 15,717) | 14,162) | 14,552) | 17,785) | 16,479) | 15,061) | 15,295) | 14,506) | 13,643) | 14,758) | 14,676) | 15,027) | 13,740) | 14,792) | 15,095) | 15,490) | |||||||
| Liquidity Ratio | |||||||||||||||||||||||||||||
| Quick ratio1 | 0.70 | 0.73 | 0.67 | 0.73 | 0.73 | 0.70 | 0.61 | 0.62 | 0.57 | 0.56 | 0.61 | 0.56 | 0.56 | 0.65 | 0.55 | 0.63 | 0.52 | 0.56 | 0.59 | 0.64 | 0.61 | 0.54 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Quick Ratio, Competitors2 | |||||||||||||||||||||||||||||
| Sherwin-Williams Co. | 0.41 | 0.38 | 0.38 | 0.44 | 0.44 | 0.40 | 0.41 | 0.52 | 0.52 | 0.49 | 0.46 | 0.50 | 0.46 | 0.46 | 0.44 | 0.45 | 0.45 | 0.48 | 0.50 | 0.71 | 0.60 | 0.48 | |||||||
Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q2 2025 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 10,276 ÷ 14,714 = 0.70
2 Click competitor name to see calculations.
- Total Quick Assets
- The total quick assets show notable fluctuations over the examined periods. Initially, there was an increase from 8,409 million USD in the first quarter of 2020 to a peak of 9,402 million USD by the third quarter of 2020. This was followed by a sharp decline to 7,456 million USD at the end of 2021. Subsequently, quick assets trended upward again, reaching 10,119 million USD by the last quarter of 2022. From that point onward, the values exhibited minor volatility but generally maintained a level around the 9,800 to 10,500 million USD range, indicating relatively stable liquidity management in recent periods.
- Current Liabilities
- Current liabilities demonstrated some degree of decline in the year 2020, dropping from 15,490 million USD at the beginning of the year to a low of 13,643 million USD by the end of 2020. However, from 2021 onwards, liabilities generally increased, peaking at 17,785 million USD in the first quarter of 2023. After this peak, a decreasing trend was observed, with liabilities stabilizing between approximately 14,400 and 14,700 million USD in the last recorded quarters. These changes suggest varying creditor obligations that might be influenced by operational or financing activities.
- Quick Ratio
- The quick ratio, an indicator of short-term liquidity, fluctuated throughout the periods. It began at 0.54 at the first quarter of 2020, peaked briefly at 0.64 in the third quarter of 2020, and then dipped below 0.56 at multiple points reflecting the dip in quick assets and increases in current liabilities. A marked improvement is seen starting from the first quarter of 2024, where the ratio rose above 0.70 in several consecutive quarters, reaching up to 0.73. This suggests an enhanced ability to cover short-term liabilities with liquid assets in recent periods, indicating improving liquidity management.
- Overall Analysis
- The data highlights volatility in both quick assets and current liabilities over the analyzed timeframe. Despite the fluctuations, the company's liquidity, as expressed by the quick ratio, shows signs of stabilization and improvement in the latest periods. The increases in quick ratio, coupled with relatively stable or moderately decreasing current liabilities at the end of the series, indicate a strengthening liquidity position. This improved liquidity position may reflect strategic financial management to enhance the company's ability to meet short-term obligations efficiently.
Cash Ratio
Linde plc, cash ratio calculation (quarterly data)
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Cash and cash equivalents | 4,786) | 5,294) | 4,850) | 5,187) | 4,626) | 4,848) | 4,664) | 3,894) | 3,357) | 4,962) | 5,436) | 3,756) | 3,655) | 4,464) | 2,823) | 4,700) | 3,137) | 4,096) | 3,754) | 5,199) | 4,941) | 4,014) | |||||||
| Total cash assets | 4,786) | 5,294) | 4,850) | 5,187) | 4,626) | 4,848) | 4,664) | 3,894) | 3,357) | 4,962) | 5,436) | 3,756) | 3,655) | 4,464) | 2,823) | 4,700) | 3,137) | 4,096) | 3,754) | 5,199) | 4,941) | 4,014) | |||||||
| Current liabilities | 14,714) | 14,485) | 14,544) | 14,049) | 13,504) | 14,389) | 15,717) | 14,162) | 14,552) | 17,785) | 16,479) | 15,061) | 15,295) | 14,506) | 13,643) | 14,758) | 14,676) | 15,027) | 13,740) | 14,792) | 15,095) | 15,490) | |||||||
| Liquidity Ratio | |||||||||||||||||||||||||||||
| Cash ratio1 | 0.33 | 0.37 | 0.33 | 0.37 | 0.34 | 0.34 | 0.30 | 0.27 | 0.23 | 0.28 | 0.33 | 0.25 | 0.24 | 0.31 | 0.21 | 0.32 | 0.21 | 0.27 | 0.27 | 0.35 | 0.33 | 0.26 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Cash Ratio, Competitors2 | |||||||||||||||||||||||||||||
| Sherwin-Williams Co. | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.02 | 0.04 | 0.08 | 0.03 | 0.02 | 0.03 | 0.02 | 0.04 | 0.06 | 0.03 | 0.05 | 0.04 | 0.06 | 0.05 | 0.14 | 0.04 | 0.05 | |||||||
Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q2 2025 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 4,786 ÷ 14,714 = 0.33
2 Click competitor name to see calculations.
- Total Cash Assets
- The total cash assets demonstrate a fluctuating pattern across the observed periods. Initial values around 4,000 to 5,000 million US dollars vary significantly each quarter with a notable decrease toward the end of 2020, followed by a rebound in early 2021. This volatility continues with occasional spikes, such as in December 2022 and March 2025, reaching peaks above 5,200 million US dollars. The overall trend suggests variability without a consistent upward or downward direction but maintaining levels broadly between 3,000 and 5,300 million US dollars.
- Current Liabilities
- Current liabilities steadily range between approximately 13,600 and 17,800 million US dollars. A gradual downward adjustment is visible in late 2020 through mid-2021, followed by an increase peaking in the first quarter of 2023. Post this peak, liabilities fluctuate moderately with small recoveries and declines but remain within a relatively narrow band near 14,000 to 15,000 million US dollars towards the latest periods. The data indicates a somewhat stable but slightly elevated liability position after 2021.
- Cash Ratio
- The cash ratio experiences noticeable quarter-to-quarter movement, oscillating mostly between 0.20 and 0.37. The ratio declines to a low around 0.21 during mid to late 2020 and early 2021, then progressively improves toward late 2021. A marked improvement is observed from late 2022 onward, with values consistently around or exceeding 0.30, reaching a high of 0.37 in multiple instances. This trend points to enhanced short-term liquidity and an improved capacity to cover current liabilities with available cash assets over time.
- Overall Insights
- The analysis of these financial metrics reveals that while cash assets exhibit volatility, their levels remain substantial and generally increase towards more recent periods. Current liabilities show minor fluctuations but hold steady without extreme deviation, indicating managed control over short-term obligations. The improving cash ratio suggests greater liquidity strength and a more conservative cash management approach, which could enhance the company's financial flexibility. The interplay between these variables underscores a cautiously optimistic liquidity position over the quarters analyzed.