Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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- Income Statement
- Cash Flow Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Common Stock Valuation Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Present Value of Free Cash Flow to Equity (FCFE)
- Net Profit Margin since 2005
- Operating Profit Margin since 2005
- Debt to Equity since 2005
- Price to Earnings (P/E) since 2005
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Long-term Activity Ratios (Summary)
Linde plc, long-term (investment) activity ratios
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Net fixed asset turnover | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset) | ||||||
| Total asset turnover | ||||||
| Equity turnover |
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).
An examination of long-term activity ratios reveals fluctuating, yet generally stabilizing, trends over the five-year period. Several ratios indicate how efficiently assets and equity are being utilized to generate revenue. Overall, the company demonstrates moderate asset utilization and a strengthening relationship between equity and revenue generation.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio initially increased from 1.18 in 2021 to 1.41 in 2022, suggesting improved efficiency in generating revenue from fixed assets. This was followed by a slight decline to 1.33 in 2023 and 1.32 in 2024, indicating a leveling off of this efficiency. A further decrease to 1.19 in 2025 suggests a potential weakening in the relationship between net fixed assets and revenue. The inclusion of operating lease right-of-use assets presents a similar pattern, starting at 1.14 in 2021, peaking at 1.37 in 2022, and declining to 1.16 in 2025. The inclusion of these assets results in slightly lower turnover ratios compared to those calculated without them.
- Total Asset Turnover
- The total asset turnover ratio experienced a modest increase from 0.38 in 2021 to 0.42 in 2022, indicating improved efficiency in utilizing all assets to generate revenue. However, the ratio remained relatively stable at 0.41 in both 2023 and 2024 before decreasing slightly to 0.39 in 2025. This suggests a plateauing of asset utilization efficiency, with a minor decline in the most recent year.
- Equity Turnover
- The equity turnover ratio demonstrates a consistent upward trend throughout the period. Starting at 0.70 in 2021, it increased to 0.83 in 2022 and remained at that level in 2023. Further increases were observed in 2024 (0.87) and 2025 (0.89), indicating a strengthening relationship between equity and revenue generation. This suggests the company is becoming more effective at generating sales for each dollar of equity invested.
In summary, while fixed asset and total asset turnover ratios show some volatility and a slight downward trend in the latest year, the equity turnover ratio consistently improved, suggesting a positive trend in how effectively equity is being used to generate revenue.
Net Fixed Asset Turnover
Linde plc, net fixed asset turnover calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Sales | ||||||
| Property, plant and equipment, net, including finance lease right-of-use assets | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Sherwin-Williams Co. | ||||||
| Net Fixed Asset Turnover, Sector | ||||||
| Chemicals | ||||||
| Net Fixed Asset Turnover, Industry | ||||||
| Materials | ||||||
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).
1 2025 Calculation
Net fixed asset turnover = Sales ÷ Property, plant and equipment, net, including finance lease right-of-use assets
= ÷ =
2 Click competitor name to see calculations.
The net fixed asset turnover ratio exhibits fluctuations over the five-year period. Initially, the ratio increased before stabilizing and then decreasing slightly. Sales demonstrate a generally upward trend, while the value of property, plant, and equipment, net, shows more variability.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio increased from 1.18 in 2021 to 1.41 in 2022, indicating improved efficiency in generating sales from fixed assets. This improvement suggests the company was utilizing its fixed assets more effectively to drive revenue. The ratio then decreased to 1.33 in 2023 and remained relatively stable at 1.32 in 2024. Finally, a slight decrease to 1.19 is observed in 2025. This recent decline could indicate a less efficient utilization of fixed assets, potentially due to increased asset investment without a corresponding increase in sales, or a slowdown in sales growth.
- Sales Trend
- Sales increased from US$30,793 million in 2021 to US$33,364 million in 2022, representing a significant growth period. Sales experienced a slight decrease in 2023 to US$32,854 million, before recovering to US$33,005 million in 2024. Continued growth is observed in 2025, with sales reaching US$33,986 million. The overall trend in sales is positive, although the rate of growth appears to have moderated in recent years.
- Fixed Asset Value Trend
- The value of property, plant, and equipment, net, decreased from US$26,166 million in 2021 to US$23,694 million in 2022. This decrease could be attributed to asset disposals, depreciation exceeding new investments, or revaluation adjustments. The value then increased to US$24,731 million in 2023 and remained relatively stable at US$24,964 million in 2024. A more substantial increase to US$28,453 million is observed in 2025, suggesting significant investment in fixed assets during that period. This investment may explain the slight decrease in the net fixed asset turnover ratio in 2025, as it takes time for new assets to contribute to sales.
The interplay between sales and fixed asset values is evident in the net fixed asset turnover ratio. The initial increase in the ratio coincided with increased sales and a decrease in fixed asset value. The subsequent stabilization and decline in the ratio appear linked to the recent increases in fixed asset investment.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Linde plc, net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Sales | ||||||
| Property, plant and equipment, net, including finance lease right-of-use assets | ||||||
| Operating lease right-of-use assets | ||||||
| Property, plant and equipment, net, including finance lease right-of-use assets (including operating lease, right-of-use asset) | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| Sherwin-Williams Co. | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Chemicals | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Materials | ||||||
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).
1 2025 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Sales ÷ Property, plant and equipment, net, including finance lease right-of-use assets (including operating lease, right-of-use asset)
= ÷ =
2 Click competitor name to see calculations.
Analysis of the presented financial information reveals fluctuations in sales and net fixed assets, impacting the net fixed asset turnover ratio over the five-year period. Sales exhibited an overall increasing trend, though with a slight dip in 2023. Net fixed assets demonstrated a more volatile pattern, decreasing in 2022 before increasing in subsequent years. Consequently, the net fixed asset turnover ratio, which measures the efficiency with which a company uses its fixed assets to generate sales, showed considerable variation.
- Sales Trend
- Sales increased from US$30,793 million in 2021 to US$33,364 million in 2022, representing a significant gain. A minor decrease was observed in 2023, with sales reaching US$32,854 million. Sales recovered in 2024 to US$33,005 million and continued to rise in 2025, reaching US$33,986 million. This indicates a generally positive sales trajectory, despite the temporary setback in 2023.
- Net Fixed Asset Trend
- Net fixed assets decreased substantially from US$27,019 million in 2021 to US$24,420 million in 2022. A subsequent increase occurred in 2023, reaching US$25,490 million, followed by a further increase to US$25,764 million in 2024. The most significant increase was observed in 2025, with net fixed assets rising to US$29,339 million. This suggests potential investment in fixed assets, particularly towards the end of the period.
- Net Fixed Asset Turnover Ratio
- The net fixed asset turnover ratio peaked at 1.37 in 2022, coinciding with the highest sales growth and a decrease in net fixed assets. The ratio decreased to 1.29 in 2023 and remained relatively stable at 1.28 in 2024. A further decline was noted in 2025, with the ratio falling to 1.16. This suggests a decreasing efficiency in utilizing fixed assets to generate sales in the latter part of the period, potentially due to the increased investment in fixed assets without a proportional increase in sales.
In summary, while sales generally increased over the period, the net fixed asset turnover ratio decreased, indicating a diminishing return on fixed asset investment. The increase in net fixed assets in 2025, coupled with a comparatively smaller increase in sales, contributed to this decline. Further investigation may be warranted to understand the reasons behind the investment in fixed assets and its impact on future sales performance.
Total Asset Turnover
Linde plc, total asset turnover calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Sales | ||||||
| Total assets | ||||||
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | ||||||
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Sherwin-Williams Co. | ||||||
| Total Asset Turnover, Sector | ||||||
| Chemicals | ||||||
| Total Asset Turnover, Industry | ||||||
| Materials | ||||||
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).
1 2025 Calculation
Total asset turnover = Sales ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
The total asset turnover ratio exhibits a generally stable pattern over the five-year period, with fluctuations around the 0.40 level. Initial observation reveals an increase followed by a slight decline, concluding with a return towards the initial value.
- Total Asset Turnover Trend
- The ratio increased from 0.38 in 2021 to 0.42 in 2022, indicating improved efficiency in asset utilization to generate sales. This suggests the company generated more sales per dollar of assets in 2022 compared to 2021.
- Following the increase, the ratio experienced a modest decrease to 0.41 in 2023 and remained at the same level in 2024. This suggests a stabilization in asset utilization efficiency after the initial improvement.
- In 2025, the ratio decreased slightly to 0.39. While still relatively close to the previous years’ values, this represents a minor reduction in the sales generated per dollar of assets.
The observed fluctuations, while present, are relatively small. The ratio remained within a narrow range of 0.38 to 0.42 throughout the period, suggesting consistent, though not dramatically changing, operational efficiency regarding asset use. The slight decrease in the most recent year warrants monitoring to determine if it signals a developing trend.
- Relationship to Sales
- Sales figures generally increased from 2021 to 2025, moving from US$30,793 million to US$33,986 million. However, the total asset turnover ratio did not consistently increase alongside sales, indicating that asset growth has largely kept pace with sales growth.
The relatively stable total asset turnover ratio suggests a consistent approach to managing assets and generating revenue. Further investigation into the components of both sales and total assets would be necessary to understand the underlying drivers of these observed trends.
Equity Turnover
Linde plc, equity turnover calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Sales | ||||||
| Total Linde plc shareholders’ equity | ||||||
| Long-term Activity Ratio | ||||||
| Equity turnover1 | ||||||
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Sherwin-Williams Co. | ||||||
| Equity Turnover, Sector | ||||||
| Chemicals | ||||||
| Equity Turnover, Industry | ||||||
| Materials | ||||||
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).
1 2025 Calculation
Equity turnover = Sales ÷ Total Linde plc shareholders’ equity
= ÷ =
2 Click competitor name to see calculations.
The equity turnover ratio demonstrates an increasing trend over the five-year period. Sales exhibited initial growth followed by a slight decline and subsequent stabilization, while total shareholders’ equity experienced a decrease throughout the period. The interplay between these factors drives the observed changes in equity turnover.
- Equity Turnover
- The equity turnover ratio increased from 0.70 in 2021 to 0.89 in 2025. This indicates that the company is generating more sales revenue for each dollar of shareholders’ equity. The most significant increase occurred between 2021 and 2022, rising to 0.83, and continued to climb, albeit at a slower pace, through 2025. This suggests improving efficiency in utilizing equity to generate sales.
- Sales Trend
- Sales increased from US$30,793 million in 2021 to US$33,364 million in 2022, representing a growth of approximately 8.3%. A slight decrease was observed in 2023, with sales falling to US$32,854 million. Sales then stabilized, reaching US$33,005 million in 2024 and increasing modestly to US$33,986 million in 2025. The relative stability in sales from 2023 onwards, coupled with decreasing equity, contributes to the rising equity turnover.
- Shareholders’ Equity Trend
- Total shareholders’ equity decreased consistently from US$44,035 million in 2021 to US$38,245 million in 2025. The largest decline occurred between 2021 and 2022, falling to US$40,028 million. Subsequent years saw smaller, but continued, reductions in equity. This decrease in the equity base, while sales remained relatively stable, is a primary driver of the increasing equity turnover ratio.
In summary, the increasing equity turnover ratio is primarily attributable to a consistent decline in shareholders’ equity alongside relatively stable sales figures. This suggests the company is becoming more efficient in generating revenue from its equity base, although the reasons for the equity reduction would require further investigation.