Stock Analysis on Net

Linde plc (NASDAQ:LIN)

Analysis of Debt

Microsoft Excel

Total Debt (Carrying Amount)

Linde plc, balance sheet: debt

US$ in millions

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Short-term debt 4,713 4,117 1,163 3,251 1,732
Current portion of long-term debt 1,263 1,599 1,709 751 1,531
Current finance lease liabilities 50 42 47 38
Long-term debt, excluding current portion 13,397 12,198 11,335 12,152 10,693
Long-term finance lease liabilities 143 114 129 125
Total debt and finance lease liabilities (carrying amount) 19,566 18,070 14,383 16,317 13,956

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Debt item Description The company
Total debt and finance lease liabilities (carrying amount) Sum of the carrying values as of the balance sheet date of all debt plus capital lease obligations. Linde plc total debt increased from 2021 to 2022 and from 2022 to 2023.

Total Debt (Fair Value)

Microsoft Excel
Dec 31, 2023
Selected Financial Data (US$ in millions)
Short-term debt 4,713
Long-term debt, including current portion 13,337
Finance lease liabilities 193
Total debt and finance lease liabilities (fair value) 18,243
Financial Ratio
Debt, fair value to carrying amount ratio 0.93

Based on: 10-K (reporting date: 2023-12-31).


Weighted-average Interest Rate on Debt

Weighted-average interest rate on debt and finance lease liabilities: 2.67%

Interest rate Debt amount1 Interest rate × Debt amount Weighted-average interest rate2
4.80% 4,713 226
1.20% 607 7
1.88% 332 6
4.80% 300 14
4.70% 599 28
2.65% 399 11
1.63% 550 9
3.63% 551 20
0.00% 774
3.20% 724 23
3.43% 198 7
1.65% 90 1
0.25% 827 2
1.00% 553 6
1.00% 780 8
3.38% 824 28
1.10% 697 8
1.90% 114 2
1.38% 829 11
0.55% 823 5
0.38% 546 2
3.63% 714 26
1.63% 876 14
3.55% 666 24
2.00% 296 6
1.00% 755 8
7.84% 193 15
Total 19,330 517
2.67%

Based on: 10-K (reporting date: 2023-12-31).

1 US$ in millions

2 Weighted-average interest rate = 100 × 517 ÷ 19,330 = 2.67%


Interest Costs Incurred

Linde plc, interest costs incurred

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Interest expense 397 180 117 170 150
Interest capitalized 67 62 57 38 38
Interest incurred on debt 464 242 174 208 188

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Debt item Description The company
Interest expense Amount of the cost of borrowed funds accounted for as interest expense for debt. Linde plc interest expense increased from 2021 to 2022 and from 2022 to 2023.
Interest capitalized Amount of interest costs capitalized disclosed as an adjusting item to interest costs incurred. Linde plc interest capitalized increased from 2021 to 2022 and from 2022 to 2023.
Interest incurred on debt Total interest costs incurred during the period and either capitalized or charged against earnings. Linde plc interest incurred on debt increased from 2021 to 2022 and from 2022 to 2023.

Adjusted Interest Coverage Ratio

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Net income, Linde plc 6,199 4,147 3,826 2,501 2,285
Add: Net income attributable to noncontrolling interest 142 134 135 125 96
Less: Income from discontinued operations, net of tax 5 4 109
Add: Income tax expense 1,814 1,434 1,262 847 769
Add: Interest expense 397 180 117 170 150
Earnings before interest and tax (EBIT) 8,552 5,895 5,335 3,639 3,191
 
Interest incurred on debt 464 242 174 208 188
Financial Ratio With and Without Capitalized Interest
Interest coverage ratio (without capitalized interest)1 21.54 32.75 45.60 21.41 21.27
Adjusted interest coverage ratio (with capitalized interest)2 18.43 24.36 30.66 17.50 16.97

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 Interest coverage ratio (without capitalized interest) = EBIT ÷ Interest expense
= 8,552 ÷ 397 = 21.54

2 Adjusted interest coverage ratio (with capitalized interest) = EBIT ÷ Interest incurred on debt
= 8,552 ÷ 464 = 18.43


Solvency ratio Description The company
Adjusted interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments (including capitalized interest). Linde plc adjusted interest coverage ratio deteriorated from 2021 to 2022 and from 2022 to 2023.