Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
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- Statement of Comprehensive Income
- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Solvency Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Enterprise Value to EBITDA (EV/EBITDA)
- Capital Asset Pricing Model (CAPM)
- Dividend Discount Model (DDM)
- Return on Equity (ROE) since 2005
- Current Ratio since 2005
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Profitability Ratios (Summary)
Linde plc, profitability 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).
- Gross Profit Margin
- The gross profit margin exhibited a general upward trend over the observed periods. Starting at 43.8% in the first quarter of 2021, it experienced a gradual decline reaching a low of 40.91% by the third quarter of 2022. However, from that point onward, there was a consistent recovery and growth, culminating in a peak of 48.45% by the second quarter of 2025. This suggests improving cost management or pricing power in recent years.
- Operating Profit Margin
- The operating profit margin showed a pattern of initial increase from 13.7% in early 2021 to 16.53% in the first quarter of 2022, followed by a brief dip to 14.4% in the second quarter of 2022. After this decline, the margin steadily improved, reaching 26.75% by mid-2025. This indicates enhanced operational efficiency or a favorable business mix progressing strongly in the latter periods.
- Net Profit Margin
- Net profit margin similarly followed an upward trajectory, beginning at 10.48% in March 2021. Despite a drop to 10.88% in mid-2022, it rebounded significantly afterwards, attaining 20.2% by the second quarter of 2025. The increase is notably pronounced from early 2023 onward, reflecting improved overall profitability possibly due to both operational gains and financial management.
- Return on Equity (ROE)
- Return on equity demonstrated consistent growth throughout the timeline. From a base of 6.29% in the first quarter of 2021, ROE rose steadily, surpassing 10% by the third quarter of 2021 and later advancing to 17.43% by mid-2025. This indicates enhanced effectiveness in generating returns for shareholders and possibly improved leverage or capital allocation strategies.
- Return on Assets (ROA)
- Return on assets rose from 3.42% at the start of 2021 to a peak nearing 7.99% by the second quarter of 2025. There was a steady increase with minor fluctuations, reflecting better asset utilization and overall operational efficiency over the period.
Return on Sales
Return on Investment
Gross Profit Margin
Linde plc, gross profit margin 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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-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).
1 Q2 2025 Calculation
Gross profit margin = 100
× (Gross marginQ2 2025
+ Gross marginQ1 2025
+ Gross marginQ4 2024
+ Gross marginQ3 2024)
÷ (SalesQ2 2025
+ SalesQ1 2025
+ SalesQ4 2024
+ SalesQ3 2024)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The financial performance over the reported quarters displays several notable trends in sales, gross margin, and gross profit margin, indicating evolving operational efficiency and market conditions.
- Sales
- Sales figures exhibit fluctuations throughout the periods, with an overall upward tendency when comparing early 2021 to mid-2025 data. Starting from approximately 7,243 million US dollars in the first quarter of 2021, sales peaked at various points, notably reaching around 8,797 million in Q3 2022. Subsequently, there are intermittent declines such as in Q4 2022 and various quarters in 2023 and early 2024. Despite these short-term decreases, the latest quarters demonstrate a rebound, culminating in sales of 8,495 million by Q2 2025, indicating resilience and potential growth momentum.
- Gross Margin
- Gross margin values, measured in millions of US dollars, generally increase over the examined timeframe. Initial values near 3,189 million in early 2021 gradually rise, with some periodic dips, and reach approximately 4,189 million by mid-2025. This upward trend suggests improvement in the absolute profitability generated from sales, possibly reflecting better cost control or product mix enhancement. Notably, gross margin maintains a fairly stable progression with minor fluctuations, supporting sustained profitability.
- Gross Profit Margin Percentage
- The gross profit margin percentage shows a distinct and steady improvement from 43.8% in the first quarter of 2021 to a high of 48.45% by the second quarter of 2025. Early 2021 through mid-2022 reflects a declining or flat trend, dropping from 43.8% to a low around 40.91% in Q3 2022. However, from Q4 2022 onward, a consistent rise is observed, culminating in nearly a 5-percentage-point increase over the last reported years. This indicates enhanced efficiency in converting sales into gross profit, possibly through cost reduction, pricing strategies, or operational leverage effects.
In summary, the data portrays a company navigating short-term sales volatility while steadily improving its gross margin in both absolute and relative terms. The strengthening gross profit margin percentage highlights increasing profitability efficiency despite fluctuations in revenues. These trends suggest a positive operational trajectory, where the company appears to optimize its cost structure and profitability over the examined periods.
Operating Profit Margin
Linde plc, operating profit margin 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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-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).
1 Q2 2025 Calculation
Operating profit margin = 100
× (Operating profitQ2 2025
+ Operating profitQ1 2025
+ Operating profitQ4 2024
+ Operating profitQ3 2024)
÷ (SalesQ2 2025
+ SalesQ1 2025
+ SalesQ4 2024
+ SalesQ3 2024)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The operating profit exhibits a fluctuating but generally upward trend across the observed quarters. Starting at 1,213 million US dollars in the first quarter of 2021, the profit dips notably in the second quarter of 2022 to 589 million US dollars but subsequently recovers strongly, reaching a higher peak of 2,354 million US dollars by the first quarter of 2025. This indicates a period of volatility followed by recovery and growth in operating performance.
Sales revenue shows a more stable pattern with moderate fluctuations. Initially increasing from 7,243 million US dollars in early 2021 to a peak around 8,797 million US dollars in the third quarter of 2022, the sales figures then experience some declines and rises but maintain a relatively consistent range, ending at 8,495 million US dollars by the first quarter of 2025. This suggests steady market demand with some variability but no drastic declines.
The operating profit margin reveals a clear upward trajectory over the period. Starting at 13.7% in the first quarter of 2021, it gradually improves, with minor dips concurrent with the decline in operating profit seen in mid-2022, and subsequently rising sharply to reach 26.75% by the first quarter of 2025. This improvement in margin indicates increasing operational efficiency and profitability relative to sales despite the fluctuations in absolute operating profit and sales figures.
- Operating Profit
- Displayed volatility with a significant drop in mid-2022, followed by a robust recovery that more than doubled the initial value by early 2025.
- Sales Revenue
- Experienced minor oscillations but largely remained stable around the 8,000 million US dollars mark, ending slightly higher than the initial levels.
- Operating Profit Margin
- Consistently improved over time, reflecting enhanced profitability and cost control, culminating in nearly doubling the margin percentage over four years.
Net Profit Margin
Linde plc, net profit margin 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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-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).
1 Q2 2025 Calculation
Net profit margin = 100
× (Net income, Linde plcQ2 2025
+ Net income, Linde plcQ1 2025
+ Net income, Linde plcQ4 2024
+ Net income, Linde plcQ3 2024)
÷ (SalesQ2 2025
+ SalesQ1 2025
+ SalesQ4 2024
+ SalesQ3 2024)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
- Net Income
- The net income exhibits a generally upward trend over the periods analyzed. Starting at 980 million USD in the first quarter of 2021, it fluctuates but progressively rises to 1,766 million USD by the first quarter of 2025. Notably, there is a significant dip in the second quarter of 2022, where net income falls to 372 million USD before quickly recovering in subsequent quarters. This indicates a temporary setback followed by a robust recovery and sustained growth.
- Sales
- Sales figures show moderate variation but maintain a relatively stable level over time, ranging approximately between 7,200 million USD and 8,800 million USD. While sales increase from 7,243 million USD in early 2021 to a peak of 8,797 million USD in the third quarter of 2022, there are some periods of decline, such as the drop to 7,899 million USD in the fourth quarter of 2022. Despite these fluctuations, overall sales remain close to the 8,000 million USD range, showing steady business activity without strong consistent growth.
- Net Profit Margin
- The net profit margin shows a clear and steady increase over the analyzed timeframe. Beginning at 10.48% in the first quarter of 2021, it rises consistently to reach above 20% by early 2025. This indicates improved profitability and operational efficiency, as the company manages to generate a higher percentage of net income from its sales. The margin increases sharply around 2023, moving from approximately 13.46% to over 19% in 2024, and eventually exceeding 20% in 2025.
- Summary
- The data reflects a company experiencing stable sales volume with slight fluctuations, combined with increasing profitability as evidenced by the rising net profit margin. The temporary decline in net income during mid-2022 suggests an isolated challenge or cost impact but is followed by strong recovery and growth, underscoring resilience in earnings performance. Overall, profitability improvements appear to be the primary driver of enhanced financial results rather than sales growth alone.
Return on Equity (ROE)
Linde plc, ROE 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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-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).
1 Q2 2025 Calculation
ROE = 100
× (Net income, Linde plcQ2 2025
+ Net income, Linde plcQ1 2025
+ Net income, Linde plcQ4 2024
+ Net income, Linde plcQ3 2024)
÷ Total Linde plc shareholders’ equity
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
The analysis of financial performance over the observed quarters reveals key trends in profitability, shareholders' equity, and return on equity (ROE).
- Net Income
- Net income shows a generally positive trend, increasing from $980 million in March 2021 to $1,766 million in June 2025. Despite some fluctuations, particularly a notable dip in June 2022 to $372 million, the earnings recovered quickly in subsequent quarters, reaching a peak of $1,725 million in March 2025. This indicates resilience and growth in profitability over the period.
- Total Shareholders’ Equity
- Shareholders’ equity exhibits a gradual decline from $46,210 million in March 2021 to $38,515 million in June 2025. The decrease is steady with occasional minor rebounds, particularly around December 2022 and December 2023. This decline may suggest increased leverage, share buybacks, or distributions exceeding retained earnings, which should be further investigated to understand the impact on long-term financial stability.
- Return on Equity (ROE)
- ROE exhibits a strong upward trend, starting at 6.29% in March 2021 and reaching 17.43% by June 2025. The growth in ROE is consistent and significant, reflecting improved efficiency in using shareholder equity to generate net income. The sharp rise particularly after 2021, despite the steady decline in equity, highlights enhanced profitability or capital management strategies contributing to better returns for shareholders.
In summary, the company demonstrates increasing profitability and improving return on equity over the period presented, although this is coupled with a gradual reduction in shareholders' equity. The relationship between net income growth and declining equity underlines the importance of analyzing capital structure decisions alongside earnings performance to fully assess the company’s financial health and sustainability.
Return on Assets (ROA)
Linde plc, ROA calculation (quarterly data)
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Net income, Linde plc | ||||||||||||||||||||||||
| Total assets | ||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||
| ROA1 | ||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||
| ROA, Competitors2 | ||||||||||||||||||||||||
| Sherwin-Williams Co. | ||||||||||||||||||||||||
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).
1 Q2 2025 Calculation
ROA = 100
× (Net income, Linde plcQ2 2025
+ Net income, Linde plcQ1 2025
+ Net income, Linde plcQ4 2024
+ Net income, Linde plcQ3 2024)
÷ Total assets
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
The analysis of the quarterly financial performance reveals several notable trends in profitability, asset management, and overall financial health over the examined periods.
- Net Income
- Net income demonstrated a general upward trajectory across the quarters. Beginning at US$980 million in March 2021, there was a consistent increase with occasional fluctuations. A significant dip occurred in June 2022 where net income dropped to US$372 million, but the following quarters saw a strong recovery and subsequent growth. The most recent data points show net income reaching US$1,766 million by June 2025, indicating overall substantial growth in profitability.
- Total Assets
- Total assets showed some volatility but generally remained within a relatively stable range. Starting at approximately US$84.99 billion in March 2021, assets experienced minor declines and rises through the periods, including a notable dip to US$74.32 billion in September 2022, followed by recovery to over US$86 billion by June 2025. This suggests asset base adjustments in response to operational or investment activities, but no drastic long-term depletion.
- Return on Assets (ROA)
- ROA exhibited a clear upward trend, reflecting improved efficiency in asset utilization to generate earnings. Beginning at 3.42% in March 2021, the ratio progressively rose over the quarters, surpassing 7% from mid-2023 onwards. The peak ROA values were observed in the range of 7.8% to 8.19% towards the latest quarters, indicating enhanced profitability relative to asset levels and more effective management strategies.
In summary, the data indicates a robust recovery and sustained increase in profitability after mid-2022, despite some volatility in net income. Total assets experienced fluctuations but maintained a stable aggregate level. The continuous improvement in ROA suggests optimized asset productivity, contributing positively to overall financial performance. These trends collectively point to strengthening operational efficiency and financial resilience over the reported timeframe.