Linde plc (NASDAQ:LIN)

Current Ratio

The current ratio has demonstrated a generally positive trend over the observed periods. Starting from 0.74, it experienced minor fluctuations during 2021 and early 2022, reaching as low as 0.71 and rising back to 0.84. From mid-2023 onwards, there is a noticeable upward movement, peaking at 0.96 in September 2024, signifying an improvement in the company's ability to cover short-term liabilities with current assets. The ratio slightly declined towards the end of the timeline but remained above 0.80, indicating a stable liquidity position overall.

Quick Ratio

The quick ratio follows a similar pattern to the current ratio, reflecting improvements in the company's near-liquid assets relative to current liabilities. Initially, values ranged from 0.52 to 0.65, with intermittent increases and decreases throughout 2021 and 2022. A strengthening trend is apparent from early 2023, with the quick ratio climbing from 0.56 to a peak of 0.73 in mid to late 2024. A mild decline is noted thereafter, settling around 0.62 by the last recorded period. This indicates enhanced liquidity excluding inventories over time but with some moderation towards the end.

Cash Ratio

The cash ratio exhibits greater volatility but a general upward trajectory across the periods. Starting at 0.27, the ratio dipped to 0.21 multiple times but showed recovery spikes reaching up to 0.37 in late 2024 and mid-2025. This suggests that the company increased its holdings of cash and cash equivalents relative to current liabilities, reinforcing liquidity buffers. Despite occasional decreases, the ratio consistently remains above 0.20, reflecting a cautious but strengthening approach to cash management.

Current Assets

The value of current assets shows a generally increasing trend over the observed period. Starting from 11,132 million US dollars in March 2021, it experiences some fluctuations but overall rises towards 13,331 million US dollars by September 2025. Notable increases occur particularly in the fourth quarters of each year, indicating possible seasonal accumulation of assets.

Current Liabilities

Current liabilities demonstrate variability with a fluctuating pattern. Initially, values are around 15,000 million US dollars but reach a peak in March 2023 at 17,785 million US dollars. Thereafter, liabilities show some decline and oscillate around the 14,000–16,000 million range toward the later periods. The spikes in liabilities seem disproportionate compared to the moderate growth of current assets.

Current Ratio

The current ratio reveals an improving liquidity position over time. Starting below 1.0 at 0.74 in March 2021, it fluctuates but generally trends upward, reaching a peak near 0.96 in September 2024. Despite these improvements, the ratio remains below 1.0 throughout most periods, suggesting that current liabilities consistently surpass current assets. The ratio shows occasional decreases, such as towards the end of the data set in September 2025 (0.82), which could indicate episodic pressures on short-term liquidity.

Summary of Financial Position Trends

Overall, the company exhibits a pattern of growing current assets, suggesting enhancement of the short-term asset base. Current liabilities, however, remain relatively high and volatile, which contributes to a current ratio persistently under or around 1.0. This situation highlights a potential ongoing challenge in achieving a conservative liquidity position with sufficient coverage of short-term obligations by current assets. Seasonal and quarterly fluctuations imply that liquidity management requires careful monitoring, especially in quarters with higher liabilities.

Total Quick Assets

The total quick assets have shown notable fluctuations over the observed periods. Starting at 8,372 million USD in March 2021, the figure experienced a decrease mid-2021, followed by a significant increase toward the end of 2021 and early 2022, reaching over 10,000 million USD by December 2022. After this peak, the values oscillated around the 9,800 to 10,300 million USD range through 2023 and 2024. In early 2025, total quick assets slightly trended downward, ending near 10,068 million USD by the third quarter. Overall, there is an upward trend from the initial period through to late 2024, with some volatility notable in intermittent quarters.

Current Liabilities

Current liabilities displayed a variable pattern over the analyzed timeframe. Beginning at 15,027 million USD in March 2021, the liabilities fluctuated moderately throughout 2021 and 2022, with a peak of 16,479 million USD recorded in December 2022. The subsequent year, current liabilities generally ranged between mid-14,000 and 15,700 million USD until December 2023. In 2024 and into 2025, liabilities showed modest fluctuations but overall remained relatively elevated, closing around 16,192 million USD by September 2025. The overall trend suggests increased short-term obligations with peaks roughly coinciding with year-end periods.

Quick Ratio

The quick ratio moved within a narrow range from 0.52 to 0.73 over the observed periods, indicating moderate liquidity stability. Initially, the ratio was at 0.56 in March 2021, dipping to a low of 0.52 mid-year, then rising to about 0.65 by March 2022. Through late 2022 and much of 2023, the quick ratio fluctuated between roughly 0.56 and 0.62, suggesting moderate short-term liquidity relative to liabilities. From early 2024 to mid-2025, the ratio improved notably, reaching a high of approximately 0.73, reflecting enhanced ability to cover current liabilities with quick assets during this period. Toward the last quarter, a slight decline was observed, dipping back to near 0.62. The data reflects periods of strengthening liquidity interspersed with moderate volatility.

Summary

The financial data reveals a general strengthening in liquidity as measured by the quick ratio, supported by growth and relative stability in quick assets despite corresponding increases in current liabilities. Peaks in current liabilities often coincide with year-end periods, suggesting possible seasonality in short-term obligations. The company's ability to maintain a quick ratio close to or above 0.6 for most periods indicates a sound short-term financial position, though fluctuations highlight a need to monitor working capital dynamics closely. The increasing trend in quick assets relative to liabilities through much of the timeline suggests efforts to bolster liquid resources, which is beneficial for meeting immediate financial commitments.

The analysis of the quarterly financial data reveals several noteworthy trends in liquidity and working capital management over the observed periods.

Total Cash Assets

The total cash assets exhibit a fluctuating pattern throughout the quarters. Initially, a slight decline from 4,096 million USD to 3,137 million USD was observed, followed by a recovery and peak at 4,700 million USD in the third quarter of 2021. Subsequent quarters show volatility with another notable peak at 5,436 million USD at the end of 2022. In the most recent quarters through to the third quarter of 2025, cash assets generally maintain a level above 4,500 million USD, though some short-term declines are evident, suggesting active cash balance management potentially aligned with operating needs or investment activities.

Current Liabilities

Current liabilities remain relatively stable but show periods of increase and decrease that likely reflect changes in short-term obligations. Starting at 15,027 million USD in the first quarter of 2021, current liabilities increased moderately with peaks such as 17,785 million USD in the first quarter of 2023 and again rising towards 16,192 million USD by the third quarter of 2025. This trend indicates an upward pressure on short-term liabilities over the longer term, which may impact working capital and liquidity strategies.

Cash Ratio

The cash ratio, which measures the ability to cover current liabilities with cash and cash equivalents, generally fluctuates in accordance with the movements in cash assets and current liabilities. Initially, the ratio dips as low as 0.21 but recovers periodically, peaking at 0.37 in the third quarter of 2024 and also in the second quarter of 2025. The data suggest an improving liquidity position during mid-to-late 2024, followed by a slight decline towards the end of the observed period. Despite fluctuations, the ratio stays below 0.4, indicating the company maintains a cautious cash buffer relative to current liabilities.

In summary, the company’s liquidity profile shows management of cash assets that balances fluctuating current liabilities while maintaining a moderate cash ratio. The pattern of peaks and troughs in cash reserves and current liabilities suggests active working capital management, likely responding to operational and market conditions. The relatively stable but moderately increasing current liabilities trend alongside maintaining cash reserves indicates a measured approach to financing short-term obligations.