Stock Analysis on Net

Linde plc (NASDAQ:LIN)

Analysis of Liquidity Ratios

Microsoft Excel

Liquidity ratios measure the company ability to meet its short-term obligations.


Liquidity Ratios (Summary)

Linde plc, liquidity ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Current ratio 0.80 0.79 0.74 0.80 0.85
Quick ratio 0.61 0.61 0.55 0.59 0.61
Cash ratio 0.30 0.33 0.21 0.27 0.22

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).

Liquidity ratio Description The company
Current ratio A liquidity ratio calculated as current assets divided by current liabilities. Linde plc current ratio improved from 2021 to 2022 and from 2022 to 2023.
Quick ratio A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. Linde plc quick ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.
Cash ratio A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. Linde plc cash ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.

Current Ratio

Linde plc, current ratio calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Current assets 12,620 13,047 10,159 10,924 10,352
Current liabilities 15,717 16,479 13,643 13,740 12,160
Liquidity Ratio
Current ratio1 0.80 0.79 0.74 0.80 0.85
Benchmarks
Current Ratio, Industry
Materials 1.24 1.37 1.47 1.40 1.38

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).

1 2023 Calculation
Current ratio = Current assets ÷ Current liabilities
= 12,620 ÷ 15,717 = 0.80

Liquidity ratio Description The company
Current ratio A liquidity ratio calculated as current assets divided by current liabilities. Linde plc current ratio improved from 2021 to 2022 and from 2022 to 2023.

Quick Ratio

Linde plc, quick ratio calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Cash and cash equivalents 4,664 5,436 2,823 3,754 2,700
Accounts receivable, net 4,718 4,559 4,499 4,167 4,322
Contract assets 196 124 134 162 368
Total quick assets 9,578 10,119 7,456 8,083 7,390
 
Current liabilities 15,717 16,479 13,643 13,740 12,160
Liquidity Ratio
Quick ratio1 0.61 0.61 0.55 0.59 0.61
Benchmarks
Quick Ratio, Industry
Materials 0.78 0.96 1.02 0.95 0.76

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).

1 2023 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 9,578 ÷ 15,717 = 0.61

Liquidity ratio Description The company
Quick ratio A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. Linde plc quick ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.

Cash Ratio

Linde plc, cash ratio calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Cash and cash equivalents 4,664 5,436 2,823 3,754 2,700
Total cash assets 4,664 5,436 2,823 3,754 2,700
 
Current liabilities 15,717 16,479 13,643 13,740 12,160
Liquidity Ratio
Cash ratio1 0.30 0.33 0.21 0.27 0.22
Benchmarks
Cash Ratio, Industry
Materials 0.50 0.68 0.72 0.65 0.41

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).

1 2023 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 4,664 ÷ 15,717 = 0.30

Liquidity ratio Description The company
Cash ratio A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. Linde plc cash ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.