Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
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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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Profitability Ratios (Summary)
Linde plc, profitability ratios (quarterly data)
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 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).
The profitability metrics demonstrate a consistent upward trend over the observed period, spanning from March 2022 to December 2025. Improvements are evident across all measured ratios – gross profit margin, operating profit margin, net profit margin, return on equity, and return on assets – indicating strengthening financial performance.
- Gross Profit Margin
- The gross profit margin exhibited a gradual increase throughout the period. Starting at 42.42% in March 2022, it steadily rose to 48.83% by December 2025. This suggests improving efficiency in production and cost of goods sold management.
- Operating Profit Margin
- A more pronounced improvement is observed in the operating profit margin. Beginning at 16.53% in March 2022, it increased significantly, reaching 26.25% in December 2025. This indicates effective control of operating expenses alongside revenue growth.
- Net Profit Margin
- The net profit margin followed a similar upward trajectory, increasing from 12.66% in March 2022 to 20.30% in December 2025. This demonstrates a growing ability to translate revenue into profit after accounting for all expenses, including taxes and interest.
- Return on Equity (ROE)
- ROE experienced substantial growth, rising from 9.36% in March 2022 to 18.04% in December 2025. This signifies an increasing efficiency in utilizing shareholder equity to generate profits.
- Return on Assets (ROA)
- The return on assets also showed consistent improvement, increasing from 4.86% in March 2022 to 7.95% in December 2025. This indicates a greater ability to generate earnings from the company’s total assets.
The period between March 2022 and June 2023 appears to have been a period of accelerated improvement for all ratios. While growth continued after June 2023, the rate of increase slowed slightly, particularly for operating profit margin and net profit margin. The final quarter of 2025 shows a slight decrease in net profit margin and return on assets compared to the preceding quarter, though both remain significantly higher than their values at the beginning of the analyzed period.
Return on Sales
Return on Investment
Gross Profit Margin
Linde plc, gross profit margin calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | 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 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Sales | |||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||
| Gross profit margin1 | |||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||
| Gross Profit Margin, Competitors2 | |||||||||||||||||||||
| Sherwin-Williams Co. | |||||||||||||||||||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 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).
1 Q4 2025 Calculation
Gross profit margin = 100
× (Gross marginQ4 2025
+ Gross marginQ3 2025
+ Gross marginQ2 2025
+ Gross marginQ1 2025)
÷ (SalesQ4 2025
+ SalesQ3 2025
+ SalesQ2 2025
+ SalesQ1 2025)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The gross profit margin exhibited a generally increasing trend over the observed period, beginning in March 2022 and continuing through December 2025. While fluctuations occurred, the overall trajectory indicates improving profitability from operations.
- Initial Period (Mar 31, 2022 – Dec 31, 2022)
- The gross profit margin began at 42.42% in March 2022, decreased to 40.91% by September 2022, and then recovered slightly to 41.70% by the end of the year. This initial period demonstrates some volatility, potentially influenced by changing sales volumes or cost structures.
- Growth Phase (Mar 31, 2023 – Dec 31, 2023)
- A clear upward trend emerged starting in March 2023, with the gross profit margin increasing from 42.77% to 46.76% by December 2023. This suggests successful implementation of cost control measures, improved pricing strategies, or a shift towards higher-margin products during this timeframe.
- Continued Improvement & Stabilization (Mar 31, 2024 – Dec 31, 2025)
- The gross profit margin continued to rise, reaching 47.56% in June 2024 and peaking at 48.83% in December 2025. The rate of increase slowed in the latter half of the period, indicating a potential stabilization of profitability. The margin remained consistently above 48% throughout the final three quarters, suggesting sustained operational efficiency.
- Sales Correlation
- Sales figures generally increased over the period, but the gross profit margin improvements were not solely dependent on sales volume. The margin increases occurred even when sales experienced minor declines, such as between September and December 2022, and again between September and December 2024, indicating that factors beyond revenue generation were driving profitability.
In summary, the gross profit margin demonstrates a positive trend, indicating enhanced operational efficiency and profitability. The company appears to have effectively managed its costs and pricing strategies, resulting in a consistently improving margin profile over the analyzed period.
Operating Profit Margin
Linde plc, operating profit margin calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | 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 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Operating profit | |||||||||||||||||||||
| Sales | |||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||
| Operating profit margin1 | |||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||
| Operating Profit Margin, Competitors2 | |||||||||||||||||||||
| Sherwin-Williams Co. | |||||||||||||||||||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 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).
1 Q4 2025 Calculation
Operating profit margin = 100
× (Operating profitQ4 2025
+ Operating profitQ3 2025
+ Operating profitQ2 2025
+ Operating profitQ1 2025)
÷ (SalesQ4 2025
+ SalesQ3 2025
+ SalesQ2 2025
+ SalesQ1 2025)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The operating profit margin demonstrates a generally positive trend over the analyzed period, spanning from March 31, 2022, to December 31, 2025. Initial values indicate some fluctuation before a sustained period of growth. The latter half of the period shows a more stable, high-performing margin.
- Initial Period (Mar 31, 2022 – Dec 31, 2022)
- The operating profit margin began at 16.53% in March 2022, decreased to 14.40% in June 2022, and then showed moderate recovery, reaching 16.09% by December 2022. This initial period suggests some volatility, potentially influenced by seasonal factors or short-term operational changes.
- Growth Phase (Mar 31, 2023 – Sep 30, 2023)
- A clear upward trend emerges starting in March 2023. The operating profit margin increased from 17.46% to 23.68% by September 2023. This substantial improvement indicates enhanced operational efficiency or favorable market conditions.
- Peak and Stabilization (Dec 31, 2023 – Sep 30, 2024)
- The margin peaked at 26.16% in December 2023, following values of 24.42% and 25.47% in the preceding quarters. The margin then stabilized in the 25% to 26% range through September 2024, suggesting a sustained level of profitability.
- Recent Performance (Mar 31, 2025 – Dec 31, 2025)
- The operating profit margin remained strong, fluctuating between 26.42% and 27.38% before concluding at 26.25% in December 2025. This indicates continued robust performance, although a slight decrease from the peak is observed in the final quarter.
- Overall Trend
- The overall trend is demonstrably positive. The operating profit margin has increased significantly over the analyzed timeframe, from approximately 16.5% to 26.25%. This suggests improved cost management, pricing strategies, or increased demand for products or services.
The consistent growth in operating profit margin throughout most of the period suggests effective management of operational costs relative to sales. The stabilization at a higher margin in recent quarters indicates a potentially sustainable level of profitability.
Net Profit Margin
Linde plc, net profit margin calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | 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 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Net income, Linde plc | |||||||||||||||||||||
| Sales | |||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||
| Net profit margin1 | |||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||
| Net Profit Margin, Competitors2 | |||||||||||||||||||||
| Sherwin-Williams Co. | |||||||||||||||||||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 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).
1 Q4 2025 Calculation
Net profit margin = 100
× (Net income, Linde plcQ4 2025
+ Net income, Linde plcQ3 2025
+ Net income, Linde plcQ2 2025
+ Net income, Linde plcQ1 2025)
÷ (SalesQ4 2025
+ SalesQ3 2025
+ SalesQ2 2025
+ SalesQ1 2025)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The net profit margin exhibited a generally increasing trend over the observed period, spanning from March 31, 2022, to December 31, 2025. Initial values indicated some fluctuation before establishing a consistent upward trajectory.
- Initial Period (Mar 31, 2022 – Dec 31, 2022)
- The net profit margin began at 12.66% in March 2022, decreased to 10.88% in June 2022, and then showed improvement, reaching 11.39% in September 2022 and 12.43% by December 2022. This suggests some initial volatility, potentially influenced by seasonal factors or short-term operational changes.
- Growth Phase (Mar 31, 2023 – Dec 31, 2023)
- A significant increase in net profit margin is observed from March 2023 through December 2023. Starting at 13.46% in March, the margin rose to 17.20% in June, 18.44% in September, and peaked at 18.87% in December. This period indicates a substantial improvement in profitability, potentially driven by increased efficiency, favorable pricing, or a shift in product mix.
- Continued Improvement & Peak (Mar 31, 2024 – Sep 30, 2025)
- The upward trend continued into 2024 and 2025, with the net profit margin reaching 19.26% in March 2024 and 19.49% in June 2024. It experienced a slight dip to 19.33% in September 2024, before rising to 19.89% in December 2024. The highest margin of the period, 21.17%, was achieved in September 2025. This sustained growth suggests effective cost management and strong revenue generation.
- Final Period (Dec 31, 2025)
- The net profit margin experienced a slight decrease in December 2025, settling at 20.30%. While a decrease, the value remains significantly higher than the margins observed in the earlier periods, indicating that the overall profitability remains strong.
Overall, the progression of the net profit margin demonstrates a positive trend, with a marked acceleration in profitability beginning in the first half of 2023 and continuing through September 2025. The final quarter shows a minor reduction, but the margin remains at a historically high level.
Return on Equity (ROE)
Linde plc, ROE calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | 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 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Net income, Linde plc | |||||||||||||||||||||
| Total Linde plc shareholders’ equity | |||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||
| ROE1 | |||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||
| ROE, Competitors2 | |||||||||||||||||||||
| Sherwin-Williams Co. | |||||||||||||||||||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 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).
1 Q4 2025 Calculation
ROE = 100
× (Net income, Linde plcQ4 2025
+ Net income, Linde plcQ3 2025
+ Net income, Linde plcQ2 2025
+ Net income, Linde plcQ1 2025)
÷ Total Linde plc shareholders’ equity
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
Return on Equity (ROE) for the analyzed period demonstrates a consistent upward trajectory, indicating improving profitability relative to shareholder equity. The metric began at 9.36% in March 2022 and increased to 18.04% by December 2025. While fluctuations exist on a quarterly basis, the overall trend is strongly positive.
- Initial Period (Mar 31, 2022 – Dec 31, 2022)
- ROE exhibited moderate variability during this timeframe, ranging from 8.95% to 10.36%. The initial value of 9.36% in March 2022 experienced a dip in June 2022 before recovering and slightly increasing through the end of the year. This suggests initial stability with some quarterly fluctuation.
- Accelerated Growth (Mar 31, 2023 – Dec 31, 2023)
- A period of significant growth is observed, with ROE increasing from 11.23% in March 2023 to 15.61% in December 2023. The largest quarterly increase occurred between March and June 2023, moving from 11.23% to 14.26%. This acceleration suggests improved efficiency in generating profits from shareholder investments.
- Continued Expansion (Mar 31, 2024 – Dec 31, 2025)
- The upward trend continued, albeit at a slightly moderated pace. ROE rose from 16.25% in March 2024 to 18.04% in December 2025. While quarterly variations persisted, the metric consistently remained above 16%, indicating sustained strong performance. A peak of 18.37% was reached in September 2025 before a slight decrease in the final quarter.
- Quarterly Volatility
- Despite the overall positive trend, quarterly fluctuations are present. For example, a decrease is noted between September 2024 (16.29%) and December 2024 (17.23%), followed by a rise in March 2025 (17.38%). These variations likely reflect seasonal factors or specific business events impacting net income and equity during those periods.
In summary, the ROE demonstrates a robust and consistent improvement over the analyzed period. The company has demonstrably increased its efficiency in utilizing shareholder equity to generate profits, culminating in a substantial increase in ROE from the beginning to the end of the period.
Return on Assets (ROA)
Linde plc, ROA calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | 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 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Net income, Linde plc | |||||||||||||||||||||
| Total assets | |||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||
| ROA1 | |||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||
| ROA, Competitors2 | |||||||||||||||||||||
| Sherwin-Williams Co. | |||||||||||||||||||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 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).
1 Q4 2025 Calculation
ROA = 100
× (Net income, Linde plcQ4 2025
+ Net income, Linde plcQ3 2025
+ Net income, Linde plcQ2 2025
+ Net income, Linde plcQ1 2025)
÷ Total assets
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
The Return on Assets (ROA) exhibits a generally positive trend over the observed period, indicating increasing efficiency in utilizing assets to generate profit. Initial values demonstrate moderate performance, followed by a period of consistent improvement and then some fluctuation.
- Initial Performance (Mar 31, 2022 – Dec 31, 2022)
- The ROA begins at 4.86% in March 2022, experiences a slight decrease to 4.56% in June 2022, and then recovers to 5.17% and 5.21% by the end of the year. This suggests a relatively stable, albeit modest, level of profitability relative to the asset base during this timeframe.
- Significant Improvement (Mar 31, 2023 – Sep 30, 2023)
- A notable increase in ROA is observed starting in March 2023, rising from 5.59% to a peak of 7.69% in September 2023. This substantial improvement suggests enhanced operational efficiency or a more effective deployment of assets. The ROA remains high at 7.67% in December 2023.
- Continued Strength and Recent Fluctuations (Mar 31, 2024 – Dec 31, 2025)
- The ROA continues to demonstrate strength, reaching 7.85% and 7.98% in the first half of 2024. A slight decrease to 7.73% is seen in September 2024, followed by a rise to 8.19% in December 2024. The most recent periods show some volatility, with the ROA at 7.99% in March 2025, 7.80% in June 2025, peaking at 8.25% in September 2025, and concluding at 7.95% in December 2025. While fluctuations exist, the ROA generally remains above the levels observed in the earlier periods.
- Overall Trend
- The overall trend indicates a positive trajectory in ROA, with a significant improvement beginning in early 2023. While recent quarters show some variability, the ROA remains at a comparatively strong level, suggesting sustained improvements in asset utilization and profitability.