Linde plc (NASDAQ:LIN)

Net fixed asset turnover

The net fixed asset turnover ratio demonstrates a general upward trend from March 2021 through September 2022, increasing from 1.03 to a peak of 1.49. This suggests improving efficiency in utilizing fixed assets to generate revenue during this period. After this peak, there is a slight decline observed from December 2022 onwards, with the ratio gradually decreasing to 1.22 by September 2025. Despite this decline, the turnover ratio remains above the levels seen in early 2021, indicating sustained relatively efficient use of fixed assets overall.

Total asset turnover

The total asset turnover ratio exhibits steady improvement from March 2021 until September 2022, rising from 0.33 to 0.45. This indicates increasingly effective use of the total asset base to produce revenue within this timeframe. However, following the peak in September 2022, the ratio declines moderately and stabilizes around 0.39 to 0.42 through to September 2025. The stabilization suggests the company maintains a consistent level of asset utilization, albeit slightly lower than its peak efficiency.

Equity turnover

The equity turnover ratio shows a consistent growth trajectory from 0.60 in March 2021 to a high of approximately 0.90 in September 2022. This upward movement indicates an increasing ability to generate revenues per unit of equity invested, signaling improved performance or leverage in utilizing equity. After peaking in late 2022, the ratio experiences a modest reduction but remains elevated between 0.83 and 0.87 through to September 2025, evidencing sustained efficiency in equity use.

Summary of trends

Overall, the data reveals a period of improving operational efficiency from early 2021 up to late 2022 across all examined turnover ratios. Net fixed asset turnover, total asset turnover, and equity turnover each reach their respective peaks during this interval. Post-peak periods show slight declines or stabilization at levels higher than those at the beginning of the observed timeline. This suggests the company enhanced its asset and equity utilization capabilities significantly over the initial years and has maintained relatively strong performance subsequently. Minor decreases following peaks may reflect normalization after efficiency gains or shifts in operational conditions.

The quarterly financial data reveals several notable trends in key operational and asset utilization metrics. Sales, expressed in millions of US dollars, exhibit variability within a moderate range over the observed periods. There is a general upward movement from early 2021 through late 2021, peaking near the end of that year, followed by some fluctuations through 2022 and 2023. Sales in 2024 and 2025 show a slight increase overall, with the highest recorded figure occurring in the third quarter of 2025.

Regarding Property, Plant, and Equipment (PP&E) net values, a declining trend is visible from the first quarter of 2021 through the third quarter of 2022. The asset base decreases significantly during this timeframe, which may indicate asset divestitures, depreciation, or a reduction in capital expenditures. However, from the fourth quarter of 2022 onward, PP&E net values begin an upward trajectory, suggesting reinvestment or capital additions. This growth continues steadily through 2024 and into 2025.

The Net Fixed Asset Turnover ratio, which measures sales generated per unit of fixed assets, shows an increasing pattern from early 2021 through the third quarter of 2022, reaching a peak during this period. This implies enhanced efficiency in utilizing fixed assets to generate sales. From late 2022 onwards, the ratio gradually declines, indicating a slight reduction in asset utilization efficiency despite increasing asset values. This trend persists into 2025, where the ratio settles at a slightly lower level compared to its peak.

Sales

Experienced growth from early 2021 to late 2021, fluctuated through 2022 and 2023, with moderate increases in 2024 and 2025, ultimately peaking in Q3 2025.

Property, Plant, and Equipment, Net

Displayed a notable decline from Q1 2021 to Q3 2022, followed by a reversal to steady growth from Q4 2022 through Q3 2025, indicating renewed investment or asset additions.

Net Fixed Asset Turnover Ratio

Rose steadily from Q1 2021 to Q3 2022, reflecting improved asset efficiency, then exhibited a gradual decline thereafter, implying a modest decrease in the efficiency of asset usage despite higher asset values.

Sales Trends

Sales exhibited a general upward trend from the first quarter of 2021 through the third quarter of 2022, increasing from $7,243 million to $8,797 million. This growth was followed by a decline in the fourth quarter of 2022 to $7,899 million. In 2023, sales stabilized around the $8,100 to $8,300 million range, with minor fluctuations. Throughout 2024 and into early 2025, sales maintained a relatively steady level between approximately $8,100 million and $8,600 million, ending at $8,615 million in the third quarter of 2025. Overall, the data indicate initial strong growth, a dip at the end of 2022, and subsequent stabilization with modest increases.

Total Assets

Total assets showed a declining trend during 2021, falling from $84,993 million in the first quarter to $81,605 million in the fourth quarter. This decrease continued sharply in the first three quarters of 2022, dropping to $74,323 million by September 2022. The fourth quarter of 2022 saw a rebound to $79,658 million. In 2023, total assets fluctuated slightly but remained near the $78,000 to $80,000 million range. In 2024 and the first three quarters of 2025, total assets increased notably, reaching a peak of $86,078 million in the second quarter of 2025 before a slight decrease to $85,993 million in the third quarter of 2025. The asset base thus experienced initial decline, mid-term recovery, and later growth.

Total Asset Turnover

The total asset turnover ratio increased steadily during 2021, rising from 0.33 in the first quarter to 0.38 by year-end. This upward momentum continued into 2022, peaking at 0.45 in the third quarter before declining slightly to 0.42 at year-end. Throughout 2023 and 2024, the ratio remained relatively stable between 0.39 and 0.42, suggesting consistent efficiency in asset use. Early 2025 figures show a modest decline to 0.39 by the third quarter. The turnover ratio thus reflects improved asset utilization in the earlier periods, followed by stabilization with minor decreases in recent quarters.

Overall Analysis

The data reveal initial growth in sales accompanied by a decreasing asset base, which together improved the asset turnover ratio, indicating enhanced efficiency in generating sales per dollar of assets. However, the decline in total assets during 2021 and early 2022 suggests possible asset reductions or disposals. The sales dip at the end of 2022 corresponded with the lowest asset levels and highest turnover, potentially reflecting operational adjustments. Subsequently, both sales and total assets increased moderately in 2023 and beyond, with turnover ratios stabilizing at slightly lower levels than the 2022 peak. This pattern suggests a period of consolidation where growth continued but asset efficiency normalized. The company's ability to maintain sales around $8,000 million despite fluctuations in assets indicates resilience, while the modest decrease in turnover in recent quarters may warrant attention to maintain operational efficiency.

Sales Trends

Sales figures show a generally upward trend from the first quarter of 2021 through late 2025, with fluctuations observed on a quarterly basis. Starting at $7,243 million in March 2021, sales increased steadily, reaching a peak of $8,797 million in September 2022. Thereafter, sales experienced some volatility but remained within a range roughly between $8,100 million and $8,615 million through the subsequent quarters until September 2025. The data indicates resilience despite small periodic declines, with an overall positive trajectory over the time span analyzed.

Total Shareholders’ Equity Trends

Shareholders' equity demonstrates a declining pattern from March 2021, beginning at $46,210 million, and decreasing to $38,698 million by the fourth quarter of 2024, before showing minor stabilization around $38,000 million through to September 2025. The most pronounced declines occurred during 2022, with equity dropping from $42,963 million in Q1 to $37,628 million in Q3, suggesting potential distributions, losses, or other reductions in retained earnings or capital during this period. The modest recovery towards year-end 2024 and subsequent quarters implies some stabilization of equity levels after the decline.

Equity Turnover Ratio Analysis

The equity turnover ratio exhibits a steady increase over the period evaluated, commencing at 0.60 in March 2021 and advancing to approximately 0.87 by late 2025. This ratio reflects the efficiency with which the equity capital is being utilized to generate sales. The consistent upward movement suggests improving operational efficiency or sales growth relative to equity base despite the declining equity levels, indicating stronger asset utilization or revenue generation relative to shareholders’ equity.

Integrated Observations

The juxtaposition of increasing sales and equity turnover alongside declining equity suggests that the company may be generating higher revenue from a contracting equity base. This scenario can imply effective asset management or capital allocation, but it also merits caution as sustained equity shrinkage could impact financial stability. The quarterly volatility in sales and equity indicates sensitivity to market or operational factors during the periods assessed, which should be monitored for underlying causes. Overall, the data points toward operational growth accompanied by tighter equity management over the reported timeline.