Return on Equity (ROE)
since 2005
Calculation
Linde plc, ROE, long-term trends, calculation
| ROE | = | 100 | × | Net income, Linde plc1 | ÷ | Total Linde plc shareholders’ equity1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2024 | 17.23% | = | 100 | × | 6,565) | ÷ | 38,092) |
| Dec 31, 2023 | 15.61% | = | 100 | × | 6,199) | ÷ | 39,720) |
| Dec 31, 2022 | 10.36% | = | 100 | × | 4,147) | ÷ | 40,028) |
| Dec 31, 2021 | 8.69% | = | 100 | × | 3,826) | ÷ | 44,035) |
| Dec 31, 2020 | 5.29% | = | 100 | × | 2,501) | ÷ | 47,317) |
| Dec 31, 2019 | 4.66% | = | 100 | × | 2,285) | ÷ | 49,074) |
| Dec 31, 2018 | 8.49% | = | 100 | × | 4,381) | ÷ | 51,596) |
| Dec 31, 2017 | 20.72% | = | 100 | × | 1,247) | ÷ | 6,018) |
| Dec 31, 2016 | 29.87% | = | 100 | × | 1,500) | ÷ | 5,021) |
| Dec 31, 2015 | 35.25% | = | 100 | × | 1,547) | ÷ | 4,389) |
| Dec 31, 2014 | 30.13% | = | 100 | × | 1,694) | ÷ | 5,623) |
| Dec 31, 2013 | 26.55% | = | 100 | × | 1,755) | ÷ | 6,609) |
| Dec 31, 2012 | 27.90% | = | 100 | × | 1,692) | ÷ | 6,064) |
| Dec 31, 2011 | 30.47% | = | 100 | × | 1,672) | ÷ | 5,488) |
| Dec 31, 2010 | 20.63% | = | 100 | × | 1,195) | ÷ | 5,792) |
| Dec 31, 2009 | 23.59% | = | 100 | × | 1,254) | ÷ | 5,315) |
| Dec 31, 2008 | 30.21% | = | 100 | × | 1,211) | ÷ | 4,009) |
| Dec 31, 2007 | 22.89% | = | 100 | × | 1,177) | ÷ | 5,142) |
| Dec 31, 2006 | 21.70% | = | 100 | × | 988) | ÷ | 4,554) |
| Dec 31, 2005 | 18.61% | = | 100 | × | 726) | ÷ | 3,902) |
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), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in millions
The analysis of the financial data over the presented periods reveals several important trends and fluctuations in profitability and equity structure.
- Net Income Trends
- The net income exhibits a generally positive trend with some volatility. Initially, net income increased from 726 million USD in 2005 to a peak of 1,254 million USD in 2009. Following this, there was a period of relative stability with some fluctuations until 2017, after which net income surged significantly to 4,381 million USD in 2018. Although there was a decline in the subsequent two years, net income recovered and reached 6,565 million USD by 2024, indicating strong growth and improved earnings capacity in recent years.
- Total Shareholders' Equity Dynamics
- Shareholders’ equity shows a fluctuating pattern with significant changes at certain points. From 3,902 million USD in 2005, equity increased gradually to 6,609 million USD in 2013. However, a sharp increase is noted in 2018, where equity jumped dramatically to 51,596 million USD. This is followed by a steady decrease in equity through 2024, ending at 38,092 million USD. The spike in 2018 and subsequent decline suggest significant equity restructuring or extraordinary transactions impacting the equity base.
- Return on Equity (ROE) Analysis
- ROE demonstrates considerable volatility across the years. The ratio started at 18.61% in 2005, rising to a peak of 35.25% in 2014, which implies high profitability relative to equity at that time. However, after 2014, ROE decreased sharply to below 10% by 2019, reaching a low of 4.66%. In recent years, ROE showed a recovery trend, increasing to 17.23% by 2024. This fluctuation reflects varying efficiency in generating profit from equity, potentially influenced by changes in net income and the equity base.
- Overall Insights
- The data suggests that while the company has achieved notable growth in net income, especially after 2017, the large fluctuations in shareholders’ equity and ROE point to underlying changes in capital structure or extraordinary financial events. The sharp increase in equity around 2018 followed by its decline indicates potential acquisitions, equity issuances, or other sizable transactions influencing the balance sheet. The recovering ROE in recent years, coupled with rising net income, points to improving utilization of equity to generate profit.
Comparison to Competitors
Linde plc, ROE, long-term trends, comparison to competitors
| Linde plc | Sherwin-Williams Co. | |
|---|---|---|
| Dec 31, 2024 | 17.23% | 66.19% |
| Dec 31, 2023 | 15.61% | 64.29% |
| Dec 31, 2022 | 10.36% | 65.12% |
| Dec 31, 2021 | 8.69% | 76.50% |
| Dec 31, 2020 | 5.29% | 56.23% |
| Dec 31, 2019 | 4.66% | 37.38% |
| Dec 31, 2018 | 8.49% | 29.72% |
| Dec 31, 2017 | 20.72% | 48.00% |
| Dec 31, 2016 | 29.87% | 60.30% |
| Dec 31, 2015 | 35.25% | 121.42% |
| Dec 31, 2014 | 30.13% | 86.90% |
| Dec 31, 2013 | 26.55% | 42.41% |
| Dec 31, 2012 | 27.90% | 35.22% |
| Dec 31, 2011 | 30.47% | 29.13% |
| Dec 31, 2010 | 20.63% | 28.74% |
| Dec 31, 2009 | 23.59% | 29.23% |
| Dec 31, 2008 | 30.21% | 29.70% |
| Dec 31, 2007 | 22.89% | 34.47% |
| Dec 31, 2006 | 21.70% | 28.91% |
| Dec 31, 2005 | 18.61% | 26.77% |
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), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Chemicals)
Linde plc, ROE, long-term trends, comparison to sector (chemicals)
| Linde plc | Chemicals | |
|---|---|---|
| Dec 31, 2024 | 17.23% | 21.94% |
| Dec 31, 2023 | 15.61% | 19.77% |
| Dec 31, 2022 | 10.36% | 14.30% |
| Dec 31, 2021 | 8.69% | 12.24% |
| Dec 31, 2020 | 5.29% | 8.90% |
| Dec 31, 2019 | 4.66% | 7.19% |
| Dec 31, 2018 | 8.49% | 9.92% |
| Dec 31, 2017 | 20.72% | 31.09% |
| Dec 31, 2016 | 29.87% | 38.16% |
| Dec 31, 2015 | 35.25% | 49.47% |
| Dec 31, 2014 | 30.13% | 38.67% |
| Dec 31, 2013 | 26.55% | 29.91% |
| Dec 31, 2012 | 27.90% | 29.57% |
| Dec 31, 2011 | 30.47% | 30.18% |
| Dec 31, 2010 | 20.63% | 22.39% |
| Dec 31, 2009 | 23.59% | 24.83% |
| Dec 31, 2008 | 30.21% | 30.06% |
| Dec 31, 2007 | 22.89% | 25.88% |
| Dec 31, 2006 | 21.70% | 23.89% |
| Dec 31, 2005 | 18.61% | 21.11% |
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), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Materials)
Linde plc, ROE, long-term trends, comparison to industry (materials)
| Linde plc | Materials | |
|---|---|---|
| Dec 31, 2024 | 17.23% | 18.64% |
| Dec 31, 2023 | 15.61% | 17.36% |
| Dec 31, 2022 | 10.36% | 16.42% |
| Dec 31, 2021 | 8.69% | 16.54% |
| Dec 31, 2020 | 5.29% | 8.40% |
| Dec 31, 2019 | 4.66% | 5.74% |
| Dec 31, 2018 | 8.49% | 12.42% |
| Dec 31, 2017 | 20.72% | 27.34% |
| Dec 31, 2016 | 29.87% | -11.75% |
| Dec 31, 2015 | 35.25% | -73.64% |
| Dec 31, 2014 | 30.13% | 5.03% |
| Dec 31, 2013 | 26.55% | 17.62% |
| Dec 31, 2012 | 27.90% | 21.12% |
| Dec 31, 2011 | 30.47% | 29.47% |
| Dec 31, 2010 | 20.63% | 30.11% |
| Dec 31, 2009 | 23.59% | 27.87% |
| Dec 31, 2008 | 30.21% | -82.36% |
| Dec 31, 2007 | 22.89% | 18.96% |
| Dec 31, 2006 | 21.70% | 33.59% |
| Dec 31, 2005 | 18.61% | 29.22% |
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), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).