Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Linde plc (NYSE:LIN)

Analysis of Property, Plant and Equipment

Advanced level

Property, Plant and Equipment Disclosure

Linde plc, balance sheet: property, plant and equipment

US$ in millions

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Production plants 25,493  24,726  16,258  14,588  13,778 
Storage tanks 4,295  4,061  2,620  2,360  2,196 
Transportation equipment and other 2,809  2,654  2,173  2,038  1,925 
Cylinders 4,184  3,955  1,875  1,722  1,654 
Buildings 3,162  3,083  1,202  1,096  1,085 
Land and land improvements 1,229  1,162  589  559  517 
Construction in progress 3,146  2,296  1,159  1,558  1,539 
Property, plant and equipment, gross 44,318  41,937  25,876  23,921  22,694 
Accumulated depreciation (15,254) (12,220) (13,819) (12,444) (11,696)
Property, plant and equipment, net 29,064  29,717  12,057  11,477  10,998 

Based on: 10-K (filing date: 2020-03-02), 10-K (filing date: 2019-03-18), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-03-01), 10-K (filing date: 2016-02-24).

Item Description The company
Property, plant and equipment, gross Amount before accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, and furniture and fixtures. Linde plc’s property, plant and equipment, gross increased from 2017 to 2018 and from 2018 to 2019.
Property, plant and equipment, net Amount after accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business to produce goods and services and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, and furniture and fixtures. Linde plc’s property, plant and equipment, net increased from 2017 to 2018 but then slightly decreased from 2018 to 2019.

Asset Age Ratios (Summary)

Linde plc, asset age ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Average age ratio 35.40% 29.97% 54.65% 53.27% 52.74%
Estimated total useful life (years) 11 25 22 22 21
Estimated age, time elapsed since purchase (years) 4 8 12 12 11
Estimated remaining life (years) 7 18 10 10 10

Based on: 10-K (filing date: 2020-03-02), 10-K (filing date: 2019-03-18), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-03-01), 10-K (filing date: 2016-02-24).

Asset age ratio Description The company
Average age ratio As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company’s fixed asset base is old or new. Newer assets are likely to be more efficient. Linde plc’s average age ratio of depreciable property, plant and equipment improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019.
Estimated total useful life Over longer time periods, this ratio is a useful measure of company’s depreciation policy and can be used for comparisons with competitors. Linde plc’s estimated total useful life of depreciable property, plant and equipment increased from 2017 to 2018 but then decreased significantly from 2018 to 2019.
Estimated time elapsed since purchase The approximate age in years of a company’s fixed assets. Useful for comparison purposes. Linde plc’s estimated time elapsed since purchase of depreciable property, plant and equipment improved from 2017 to 2018 and from 2018 to 2019.
Estimated remaining life Linde plc’s estimated remaining life of depreciable property, plant and equipment increased from 2017 to 2018 but then decreased significantly from 2018 to 2019.

Average Age

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Accumulated depreciation 15,254  12,220  13,819  12,444  11,696 
Property, plant and equipment, gross 44,318  41,937  25,876  23,921  22,694 
Land and land improvements 1,229  1,162  589  559  517 
Asset Age Ratio
Average age1 35.40% 29.97% 54.65% 53.27% 52.74%

Based on: 10-K (filing date: 2020-03-02), 10-K (filing date: 2019-03-18), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-03-01), 10-K (filing date: 2016-02-24).

2019 Calculations

1 Average age = 100 × Accumulated depreciation ÷ (Property, plant and equipment, gross – Land and land improvements)
= 100 × 15,254 ÷ (44,318 – 1,229) = 35.40%

Asset age ratio Description The company
Average age As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company’s fixed asset base is old or new. Newer assets are likely to be more efficient. Linde plc’s average age ratio of depreciable property, plant and equipment improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019.

Estimated Total Useful Life

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Property, plant and equipment, gross 44,318  41,937  25,876  23,921  22,694 
Land and land improvements 1,229  1,162  589  559  517 
Depreciation expense 3,940  1,615  1,136  1,071  1,059 
Asset Age Ratio (Years)
Estimated total useful life1 11 25 22 22 21

Based on: 10-K (filing date: 2020-03-02), 10-K (filing date: 2019-03-18), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-03-01), 10-K (filing date: 2016-02-24).

2019 Calculations

1 Estimated total useful life = (Property, plant and equipment, gross – Land and land improvements) ÷ Depreciation expense
= (44,318 – 1,229) ÷ 3,940 = 11

Asset age ratio Description The company
Estimated total useful life Over longer time periods, this ratio is a useful measure of company’s depreciation policy and can be used for comparisons with competitors. Linde plc’s estimated total useful life of depreciable property, plant and equipment increased from 2017 to 2018 but then decreased significantly from 2018 to 2019.

Estimated Age, Time Elapsed since Purchase

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Accumulated depreciation 15,254  12,220  13,819  12,444  11,696 
Depreciation expense 3,940  1,615  1,136  1,071  1,059 
Asset Age Ratio (Years)
Time elapsed since purchase1 4 8 12 12 11

Based on: 10-K (filing date: 2020-03-02), 10-K (filing date: 2019-03-18), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-03-01), 10-K (filing date: 2016-02-24).

2019 Calculations

1 Time elapsed since purchase = Accumulated depreciation ÷ Depreciation expense
= 15,254 ÷ 3,940 = 4

Asset age ratio Description The company
Estimated time elapsed since purchase The approximate age in years of a company’s fixed assets. Useful for comparison purposes. Linde plc’s estimated time elapsed since purchase of depreciable property, plant and equipment improved from 2017 to 2018 and from 2018 to 2019.

Estimated Remaining Life

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Property, plant and equipment, net 29,064  29,717  12,057  11,477  10,998 
Land and land improvements 1,229  1,162  589  559  517 
Depreciation expense 3,940  1,615  1,136  1,071  1,059 
Asset Age Ratio (Years)
Estimated remaining life1 7 18 10 10 10

Based on: 10-K (filing date: 2020-03-02), 10-K (filing date: 2019-03-18), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-03-01), 10-K (filing date: 2016-02-24).

2019 Calculations

1 Estimated remaining life = (Property, plant and equipment, net – Land and land improvements) ÷ Depreciation expense
= (29,064 – 1,229) ÷ 3,940 = 7

Asset age ratio Description The company
Estimated remaining life Linde plc’s estimated remaining life of depreciable property, plant and equipment increased from 2017 to 2018 but then decreased significantly from 2018 to 2019.