Linde plc (NASDAQ:LIN)

The liquidity position, as indicated by the current, quick, and cash ratios, exhibits fluctuations over the observed period. Generally, there is an improving trend in all three ratios from 2022 through mid-2024, followed by some moderation in the latter half of 2024 and into 2025.

Current Ratio

The current ratio began at 0.84 in March 2022 and generally decreased through June 2022, reaching a low of 0.74. It experienced modest recovery through December 2022, peaking at 0.79. A further dip to 0.73 occurred in March 2023, followed by a consistent upward trend, reaching 0.96 by September 2024. The ratio then decreased to 0.89 by December 2024 and stabilized around 0.90 through June 2025, ending at 0.88 in December 2025. This suggests an initial period of potential liquidity concern followed by strengthening short-term solvency.

Quick Ratio

The quick ratio mirrors the current ratio’s initial decline, starting at 0.65 in March 2022 and falling to 0.56 by June 2022. It showed a slight improvement through December 2022, reaching 0.61. Similar to the current ratio, the quick ratio increased from March 2023, peaking at 0.73 in June and September 2024. A subsequent decrease to 0.67 by December 2024 was observed, followed by a stabilization around 0.70 through June 2025, concluding at 0.68 in December 2025. The quick ratio consistently remains below the current ratio, indicating a reliance on inventory to meet current obligations.

Cash Ratio

The cash ratio demonstrates the most conservative measure of liquidity. It began at 0.31 in March 2022, decreased to 0.24 by June 2022, and showed modest fluctuations through December 2022, reaching 0.33. The ratio experienced a decline to 0.23 in June 2023, followed by a gradual increase to 0.37 by September 2024. A slight decrease to 0.33 occurred in December 2024, and the ratio stabilized around 0.33 through June 2025, ending at 0.33 in December 2025. The cash ratio consistently remains the lowest of the three ratios, indicating a limited ability to cover current liabilities solely with cash and cash equivalents.

Overall Trend

From 2022 to mid-2024, all three ratios generally improved, suggesting a strengthening liquidity position. The latter portion of the observed period (late 2024 and 2025) shows a moderation of this improvement, with ratios stabilizing or experiencing slight declines. This suggests that while liquidity improved, the rate of improvement slowed, and the company’s liquidity position remained relatively stable.

The current ratio exhibited fluctuations over the analyzed period, spanning from March 31, 2022, to December 31, 2025. Initially, the ratio demonstrated a declining trend, followed by periods of stabilization and subsequent improvement, before concluding with a slight decrease in the final reported quarter.

Initial Decline (Mar 31, 2022 – Jun 30, 2022)

The current ratio decreased from 0.84 to 0.74, indicating a weakening in the company’s ability to cover its short-term liabilities with its short-term assets during this period. This suggests a potential increase in short-term obligations relative to available liquid assets.

Stabilization and Recovery (Sep 30, 2022 – Jun 30, 2023)

Following the initial decline, the ratio remained relatively stable at 0.74 for the quarter ending September 30, 2022, before showing a gradual recovery, reaching 0.78 by June 30, 2023. This indicates a potential stabilization of the short-term financial position and a modest improvement in liquidity.

Peak Performance (Mar 31, 2024 – Sep 30, 2024)

The current ratio experienced its strongest performance during this timeframe, increasing from 0.91 to 0.96. This suggests a significant improvement in the company’s short-term liquidity position, with a comfortable margin of current assets over current liabilities. This period represents the highest levels of liquidity observed throughout the analyzed timeframe.

Subsequent Moderation (Dec 31, 2024 – Dec 31, 2025)

After peaking in September 2024, the current ratio experienced a moderate decline, ending at 0.88 on December 31, 2025. While still above the levels observed in the earlier part of the period, this decrease warrants attention as it suggests a potential erosion of the short-term liquidity buffer. The ratio remained relatively stable between 0.82 and 0.94 during this period.

Overall, the current ratio demonstrates a cyclical pattern. While the company experienced periods of liquidity concern, it also demonstrated the ability to improve its short-term financial position. The recent moderation in the ratio suggests a need for continued monitoring of current asset and liability levels.

The quick ratio for the analyzed period demonstrates fluctuations, generally trending upwards with some quarterly variations. Initial values indicate a moderate level of liquidity, which improves over time, though not consistently.

Overall Trend

The quick ratio began at 0.65 in March 2022 and generally increased, reaching 0.73 in June 2023 and remaining at that level through September 2024. A slight decrease to 0.67 was observed in December 2024, followed by a rebound to 0.73 in March 2025, and a final value of 0.68 in June 2025. This suggests an overall improvement in the company’s ability to meet its short-term obligations with its most liquid assets, though recent quarters show some volatility.

Initial Period (March 2022 – December 2022)

From March 2022 to June 2022, the quick ratio decreased from 0.65 to 0.56. It remained stable at 0.56 through September 2022 before increasing to 0.61 by December 2022. This initial period shows a degree of instability, with a dip followed by a partial recovery.

Improvement Phase (March 2023 – September 2024)

A period of improvement is evident from March 2023 to September 2024. The ratio moved from 0.56 to a peak of 0.73, indicating a strengthening liquidity position. This improvement suggests effective management of current assets and liabilities during this timeframe.

Recent Fluctuations (December 2024 – June 2025)

The most recent six months show some fluctuation. The ratio decreased from 0.73 in September 2024 to 0.67 in December 2024, then increased to 0.73 in March 2025, and finally decreased to 0.68 in June 2025. These fluctuations warrant further investigation to determine the underlying causes, such as changes in working capital management or seasonal variations in business activity.

Underlying Components

Total quick assets generally increased over the period, moving from US$9,409 million in March 2022 to US$10,291 million in December 2025. However, current liabilities also increased, from US$14,506 million to US$15,198 million over the same period. The ratio’s improvement is therefore not solely attributable to increases in quick assets, but also to the management of current liabilities.

In conclusion, the quick ratio indicates a generally healthy and improving liquidity position, although recent quarterly variations suggest a need for continued monitoring and analysis.

The cash ratio for the analyzed period demonstrates fluctuations, generally remaining within a range of 0.23 to 0.37. An initial decline is observed from the first quarter of 2022 through the second quarter of 2023, followed by a period of relative stability and then a slight increase towards the end of the analyzed timeframe.

Overall Trend

The cash ratio exhibited a decreasing trend from 0.31 in March 2022 to a low of 0.23 in June 2023. Subsequently, the ratio experienced an upward trajectory, peaking at 0.37 in both March 2024 and March 2025, before settling at 0.33 in December 2025. This suggests a strengthening, then a weakening, and finally a re-strengthening of the company’s immediate liquidity position.

Short-Term Fluctuations

A notable increase in the cash ratio occurred between June 2022 (0.24) and December 2022 (0.33). This coincided with an increase in total cash assets. A similar pattern was observed between September 2023 (0.27) and March 2024 (0.34). Conversely, a decrease was noted between March 2024 (0.34) and September 2024 (0.37) and again between March 2025 (0.37) and December 2025 (0.33).

Relationship to Underlying Components

The cash ratio is calculated from total cash assets and current liabilities. While total cash assets fluctuated throughout the period, current liabilities generally remained stable, with a slight upward trend overall. The observed changes in the cash ratio are therefore primarily driven by variations in total cash assets. Periods of increasing cash assets generally correlate with increases in the cash ratio, and vice versa.

The cash ratio remained above 0.20 throughout the entire period, indicating a consistent, albeit varying, ability to cover current liabilities with immediately available cash. The fluctuations suggest a dynamic approach to cash management, potentially influenced by operational needs and investment activities.