Analysis of Property, Plant and Equipment
Paying user area
Try for free
Linde plc pages available for free this week:
- Statement of Comprehensive Income
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Long-term (Investment) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Common Stock Valuation Ratios
- Capital Asset Pricing Model (CAPM)
- Dividend Discount Model (DDM)
- Selected Financial Data since 2005
- Total Asset Turnover since 2005
- Price to Earnings (P/E) since 2005
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Linde plc for $24.99.
This is a one-time payment. There is no automatic renewal.
We accept:
Property, Plant and Equipment Disclosure
Linde plc, balance sheet: property, plant and equipment
US$ in millions
Based on: 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), 10-K (reporting date: 2020-12-31).
- Production Plants
- The value of production plants shows a steady upward trend, increasing each year from US$28,226 million in 2020 to US$35,364 million in 2024. This reflects a continuous investment in production capacity or upgrades.
- Storage Tanks
- Storage tanks exhibit growth over the period, rising from US$4,461 million in 2020 to US$5,689 million in 2024. The increase is more pronounced starting from 2022, indicating enhanced storage infrastructure.
- Transportation Equipment and Other
- Values for transportation equipment and other assets also present a clear upward trend, growing from US$2,978 million in 2020 to US$4,210 million in 2024, with a noticeable acceleration in growth after 2021.
- Cylinders
- The asset value for cylinders remains relatively stable, slightly fluctuating around the US$4,500 million mark, with a modest increase to US$4,993 million in 2023 followed by a slight decline to US$4,970 million in 2024.
- Buildings
- Building values show minor fluctuations without a clear directional trend, starting at US$3,327 million in 2020, decreasing to US$3,002 million in 2022, then slightly recovering to US$3,355 million in 2024.
- Land and Improvements
- There is a gradual decline in the value of land and improvements from US$1,259 million in 2020 to US$1,045 million in 2024, indicating possible disposals, revaluations, or reduced investments in land-related assets.
- Construction in Progress
- Construction in progress shows variability but an overall increasing trend, beginning at US$3,257 million in 2020, decreasing slightly in 2021, then rising steadily to US$4,086 million by 2024, suggesting ongoing developmental projects.
- Property, Plant, and Equipment, Gross
- The gross property, plant, and equipment balance rises consistently from US$47,999 million in 2020 to US$58,719 million in 2024, reflecting sustained capital expenditures and asset additions over the years.
- Accumulated Depreciation
- Accumulated depreciation increases significantly in magnitude, from -US$19,288 million in 2020 to -US$33,944 million in 2024, highlighting ongoing aging and usage of assets and consistent depreciation charges.
- Property, Plant, and Equipment, Net
- Net property, plant, and equipment values exhibit a declining trend from US$28,711 million in 2020 to US$23,548 million in 2022, followed by a modest recovery to US$24,775 million in 2024. This pattern indicates that asset depreciations have outpaced additions initially, but recent years show a stabilization or moderate increase in net asset base.
Asset Age Ratios (Summary)
Linde plc, asset age ratios
Based on: 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), 10-K (reporting date: 2020-12-31).
- Average age ratio
- The average age ratio has exhibited a steady upward trend, increasing from 41.27% in 2020 to 58.85% in 2024. This indicates an aging asset base over the five-year period, reflecting that a larger proportion of the property, plant, and equipment has aged relative to its estimated useful life.
- Estimated total useful life
- The estimated total useful life of the assets has gradually extended from 12 years in 2020 and 2021 to 18 years by 2024. This suggests that either the assets have been revalued to have longer lifespans or newer assets with longer expected useful lives have been added to the asset base.
- Estimated age, time elapsed since purchase
- This metric increased consistently from 5 years in 2020 to 11 years in 2024, confirming that the assets are aging as expected without significant early retirements or replacements.
- Estimated remaining life
- The estimated remaining life remained relatively stable, fluctuating slightly between 6 and 7 years throughout the period. This stability, despite the increasing age of the assets, aligns with the observed extension in the total useful life, indicating adjustments in life expectancy that maintain the residual service potential of the assets.
Average Age
Based on: 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), 10-K (reporting date: 2020-12-31).
2024 Calculations
1 Average age = 100 × Accumulated depreciation ÷ (Property, plant and equipment, gross – Land and improvements)
= 100 × ÷ ( – ) =
- Accumulated Depreciation
- There is a consistent upward trend in accumulated depreciation over the five-year period. Starting at US$ 19,288 million in 2020, the figure increases each year, reaching US$ 33,944 million by the end of 2024. This reflects ongoing depreciation charges and the aging nature of the company's assets.
- Property, Plant and Equipment, Gross
- The gross value of property, plant, and equipment shows a gradual increase from US$ 47,999 million in 2020 to US$ 58,719 million in 2024. This suggests steady capital investments or asset acquisitions throughout the period.
- Land and Improvements
- The value of land and improvements exhibits a slight decline across the observed years, decreasing from US$ 1,259 million in 2020 to US$ 1,045 million in 2024. This marginal reduction may indicate disposals or revaluations of land assets.
- Average Age Ratio
- The average age ratio of the asset base has increased significantly, rising from 41.27% in 2020 to 58.85% by 2024. This indicates that the overall asset pool is aging, which may have implications for future maintenance costs or capital expenditures.
Estimated Total Useful Life
Based on: 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), 10-K (reporting date: 2020-12-31).
2024 Calculations
1 Estimated total useful life = (Property, plant and equipment, gross – Land and improvements) ÷ Depreciation expense
= ( – ) ÷ =
- Property, plant and equipment, gross
- The gross value of property, plant, and equipment showed a consistent upward trend over the observed period. It increased from US$47,999 million at the end of 2020 to US$58,719 million by the end of 2024. This represents a steady growth, indicating sustained investment or asset acquisitions in property, plant, and equipment.
- Land and improvements
- In contrast to the overall gross property, plant, and equipment values, the land and improvements category exhibited a declining trend. Starting at US$1,259 million at the end of 2020, the value decreased progressively to US$1,045 million by the end of 2024. This decline suggests possible disposals, revaluations, or lower capital expenditures directed specifically toward land and related improvements.
- Depreciation expense
- The depreciation expense showed a downward trend throughout the period. It declined from US$3,861 million in 2020 to US$3,226 million in 2024. This reduction could be associated with the lengthening of the estimated useful life of assets or changes in asset composition.
- Estimated total useful life
- The estimated total useful life of assets increased over the years, starting at 12 years at the end of 2020 and extending to 18 years by the end of 2024. This lengthening likely correlates with the observed decrease in depreciation expense despite growing gross assets, indicating management expectations of prolonged asset usage or updated depreciation policies.
Estimated Age, Time Elapsed since Purchase
Based on: 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), 10-K (reporting date: 2020-12-31).
2024 Calculations
1 Time elapsed since purchase = Accumulated depreciation ÷ Depreciation expense
= ÷ =
- Accumulated Depreciation
- Accumulated depreciation shows a continuous upward trend from 19,288 million US dollars at the end of 2020 to 33,944 million US dollars by the end of 2024. This indicates a steady increase in the total depreciation recorded on the property, plant, and equipment assets over the five-year period.
- Depreciation Expense
- Depreciation expense remains relatively stable but shows a slight downward trend over the years. It started at 3,861 million US dollars in 2020, peaked slightly at 3,912 million in 2021, and then declined progressively to 3,226 million in 2024. This suggests a gradual reduction in the annual depreciation charge applied to the assets.
- Time Elapsed Since Purchase
- The time elapsed since purchase indicates an increasing age of the asset base, rising from 5 years in 2020 to 11 years in 2024. This increase in asset age correlates with the rising accumulated depreciation and may explain the decline in annual depreciation expense, potentially reflecting changes in the asset mix or depreciation methods.
Estimated Remaining Life
Based on: 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), 10-K (reporting date: 2020-12-31).
2024 Calculations
1 Estimated remaining life = (Property, plant and equipment, net – Land and improvements) ÷ Depreciation expense
= ( – ) ÷ =
- Property, plant and equipment, net
- The net value of property, plant, and equipment shows a declining trend from 2020 through 2022, decreasing from 28,711 million US dollars to 23,548 million US dollars. In 2023 and 2024, this figure experiences a slight recovery, increasing to 24,552 million and 24,775 million US dollars respectively. Overall, there is a notable reduction in net property, plant, and equipment over the five-year period, with the lowest point reached in 2022 before modest growth resumes.
- Land and improvements
- The value of land and improvements steadily decreases over the observed period, falling from 1,259 million US dollars in 2020 to 1,045 million US dollars in 2024. There is a slight uptick in 2023 to 1,087 million US dollars, but the general trend is downward, indicating possible disposals or revaluations of land assets.
- Depreciation expense
- Depreciation expense initially rises slightly from 3,861 million US dollars in 2020 to 3,912 million in 2021, before gradually declining year over year to 3,633 million in 2022, 3,266 million in 2023, and 3,226 million in 2024. This decreasing pattern suggests either a reduction in depreciable asset base or changes in depreciation methods or asset lives.
- Estimated remaining life
- The estimated remaining life of the assets remains relatively stable throughout the period, with a slight decrease from 7 years in 2020 to 6 years in 2021 and 2022, followed by a return to 7 years in 2023 and 2024. This stability suggests consistent assumptions about asset longevity despite fluctuations in net asset values and depreciation expense.