Analysis of Long-term (Investment) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
Linde plc, long-term (investment) activity ratios (quarterly data)
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio shows an overall increasing trend from the beginning of the recorded data in March 2020 through to early 2022, rising from 0.95 to a peak of 1.49 by December 2021. Following this peak, the ratio exhibits a gradual decline through subsequent quarters, stabilizing around the range of 1.31 to 1.34 from March 2024 to March 2025. This pattern suggests initial improved utilization of fixed assets up to late 2021, followed by a slight reduction in efficiency or a change in asset base relative to sales in later periods.
- Total Asset Turnover
- Total asset turnover demonstrates a steady upward trend from 0.31 in March 2020 to a high of 0.45 by December 2021. After this peak, the ratio declines modestly and stabilizes around 0.40 to 0.42 from early 2022 onwards through to March 2025. The initial increase points to enhanced overall asset efficiency, while the subsequent stabilization indicates consistent asset utilization levels over the latter periods.
- Equity Turnover
- The equity turnover ratio reveals a continuous increase from 0.58 in March 2020 to a peak of 0.9 by December 2021. Following this peak, the ratio decreases slightly but maintains a stable range around 0.83 to 0.87 through to March 2025. This trend indicates that the company has incrementally improved its ability to generate revenue from shareholders' equity during the earlier periods and maintained this efficiency in the more recent quarters, despite minor fluctuations.
Net Fixed Asset Turnover
Linde plc, net fixed asset turnover calculation (quarterly data)
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Sales | 8,112) | 8,282) | 8,356) | 8,267) | 8,100) | 8,302) | 8,155) | 8,204) | 8,193) | 7,899) | 8,797) | 8,457) | 8,211) | 8,298) | 7,668) | 7,584) | 7,243) | 7,272) | 6,855) | 6,377) | 6,739) | |||||||
| Property, plant and equipment, net | 25,710) | 24,775) | 25,124) | 24,575) | 24,418) | 24,552) | 23,624) | 23,808) | 23,796) | 23,548) | 22,586) | 23,993) | 25,595) | 26,003) | 26,180) | 26,917) | 26,934) | 28,711) | 27,945) | 27,693) | 27,418) | |||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||||||
| Net fixed asset turnover1 | 1.28 | 1.33 | 1.31 | 1.34 | 1.34 | 1.34 | 1.37 | 1.39 | 1.40 | 1.42 | 1.49 | 1.36 | 1.24 | 1.18 | 1.14 | 1.08 | 1.03 | 0.95 | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||||||||||||||||||||||||
| Sherwin-Williams Co. | 6.29 | 6.54 | 6.89 | 7.34 | 7.64 | 8.13 | 8.92 | 9.40 | 9.57 | 10.04 | 10.62 | 10.59 | 10.64 | 10.68 | 10.77 | 10.88 | 10.60 | 10.01 | — | — | — | |||||||
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2025 Calculation
Net fixed asset turnover
= (SalesQ1 2025
+ SalesQ4 2024
+ SalesQ3 2024
+ SalesQ2 2024)
÷ Property, plant and equipment, net
= (8,112 + 8,282 + 8,356 + 8,267)
÷ 25,710 = 1.28
2 Click competitor name to see calculations.
- Sales Trends
- Sales exhibit a generally positive trend from March 2020 through December 2021, rising from approximately $6.7 billion to $8.3 billion. This period is marked by steady growth with minor fluctuations. In 2022, sales show an initial increase reaching about $8.8 billion in Q3 but then decline to around $7.9 billion by Q4. Through 2023 and early 2024, sales stabilize within the $8.1 to $8.3 billion range, followed by a slight decrease towards early 2025, ending near $8.1 billion. This pattern suggests a recovery and then leveling off without significant growth in recent quarters.
- Property, Plant, and Equipment, Net
- The net value of property, plant, and equipment decreases steadily from about $27.4 billion in March 2020 to a low near $22.6 billion in September 2022. After this low point, values rebound somewhat, rising back to approximately $25.7 billion by March 2025. This indicates a reduction in asset base through early 2022, possibly due to asset sales, depreciation, or divestitures, followed by renewed investment or acquisitions."
- Net Fixed Asset Turnover Ratio
- The net fixed asset turnover ratio begins at 0.95 in September 2020 and shows a continuous increase through December 2022, peaking at approximately 1.49 in Q4 2022. This ratio subsequently declines gradually to around 1.28 by March 2025. The rising ratio through 2022 reflects more efficient use of fixed assets to generate sales during that period. The ensuing decline suggests a decrease in efficiency or a relative increase in asset base compared to sales post-2022.
- Overall Insights
- Over the observed periods, the company demonstrated growth in sales and improved fixed asset efficiency up to late 2022. The decline in net fixed assets during the initial period likely contributed to better asset turnover ratios. The subsequent stabilization of sales combined with a partial recovery in net assets correlates with a declining asset turnover ratio, indicating a potential shift in operational dynamics or capital investment strategies. These trends highlight a phase of asset optimization followed by reinvestment and more stable sales performance.
Total Asset Turnover
Linde plc, total asset turnover calculation (quarterly data)
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Sales | 8,112) | 8,282) | 8,356) | 8,267) | 8,100) | 8,302) | 8,155) | 8,204) | 8,193) | 7,899) | 8,797) | 8,457) | 8,211) | 8,298) | 7,668) | 7,584) | 7,243) | 7,272) | 6,855) | 6,377) | 6,739) | |||||||
| Total assets | 82,704) | 80,147) | 82,546) | 80,215) | 80,347) | 80,811) | 77,827) | 78,718) | 80,308) | 79,658) | 74,323) | 77,885) | 82,767) | 81,605) | 84,191) | 84,345) | 84,993) | 88,229) | 87,209) | 85,856) | 84,369) | |||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||||||
| Total asset turnover1 | 0.40 | 0.41 | 0.40 | 0.41 | 0.41 | 0.41 | 0.42 | 0.42 | 0.42 | 0.42 | 0.45 | 0.42 | 0.38 | 0.38 | 0.35 | 0.34 | 0.33 | 0.31 | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Total Asset Turnover, Competitors2 | ||||||||||||||||||||||||||||
| Sherwin-Williams Co. | 0.94 | 0.98 | 0.96 | 0.97 | 0.98 | 1.00 | 1.00 | 0.99 | 0.98 | 0.98 | 0.97 | 0.94 | 0.93 | 0.97 | 0.95 | 0.96 | 0.92 | 0.90 | — | — | — | |||||||
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2025 Calculation
Total asset turnover
= (SalesQ1 2025
+ SalesQ4 2024
+ SalesQ3 2024
+ SalesQ2 2024)
÷ Total assets
= (8,112 + 8,282 + 8,356 + 8,267)
÷ 82,704 = 0.40
2 Click competitor name to see calculations.
- Sales Trend
- Sales experienced fluctuations throughout the reported periods. Initially, there was a decline from $6,739 million in March 2020 to $6,377 million in June 2020, followed by a general upward trend reaching a peak of $8,797 million in September 2022. After this peak, sales showed some variability, fluctuating mostly between $8,100 million and $8,300 million from March 2023 to December 2024, before declining slightly to $8,112 million in March 2025. Overall, sales grew from the early periods in 2020 to a higher plateau in later years, suggesting growth with some volatility.
- Total Assets Trend
- Total assets began around $84,369 million in March 2020 and exhibited a downward trend until September 2022, dropping to a low of $74,323 million. From that point, total assets demonstrated recovery, increasing again to over $80,000 million in subsequent quarters. However, this recovery was marked by fluctuations, with total assets alternating around the $80,000 million level toward the end of the series. The fluctuations in total assets may indicate asset restructurings or changes in investment activities over the analyzed periods.
- Total Asset Turnover Trend
- Total asset turnover, representing efficiency in generating sales from assets, was not provided for early periods but started at 0.31 in September 2020 and steadily increased to a peak of 0.45 in December 2021. Following this peak, the ratio stabilized around the 0.4 to 0.42 range through March 2025, indicating consistent asset utilization efficiency in more recent periods. The increase and subsequent stabilization suggest improvements in operational efficiency that have been maintained over time.
- Summary and Insights
- The data indicates that sales have generally increased during the periods, particularly reaching a high in late 2022, which corresponds with a bottoming out and subsequent partial recovery in total assets. The improvement in total asset turnover particularly between 2020 and 2021 shows the company increased its ability to generate sales from its asset base, an efficiency that has been sustained. Despite some volatility in sales and assets, the company has maintained a relatively consistent operational efficiency, as seen in the steady asset turnover ratio in recent years.
Equity Turnover
Linde plc, equity turnover calculation (quarterly data)
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Sales | 8,112) | 8,282) | 8,356) | 8,267) | 8,100) | 8,302) | 8,155) | 8,204) | 8,193) | 7,899) | 8,797) | 8,457) | 8,211) | 8,298) | 7,668) | 7,584) | 7,243) | 7,272) | 6,855) | 6,377) | 6,739) | |||||||
| Total Linde plc shareholders’ equity | 38,032) | 38,092) | 39,173) | 38,179) | 38,829) | 39,720) | 38,898) | 39,911) | 39,970) | 40,028) | 37,628) | 39,674) | 42,963) | 44,035) | 44,323) | 45,777) | 46,210) | 47,317) | 46,175) | 45,537) | 44,776) | |||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||||||
| Equity turnover1 | 0.87 | 0.87 | 0.84 | 0.86 | 0.84 | 0.83 | 0.83 | 0.83 | 0.83 | 0.83 | 0.90 | 0.82 | 0.74 | 0.70 | 0.67 | 0.63 | 0.60 | 0.58 | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Equity Turnover, Competitors2 | ||||||||||||||||||||||||||||
| Sherwin-Williams Co. | 5.58 | 5.70 | 5.55 | 6.13 | 6.56 | 6.20 | 6.09 | 6.32 | 7.13 | 7.14 | 8.35 | 9.34 | 9.08 | 8.18 | 7.31 | 6.92 | 6.13 | 5.09 | — | — | — | |||||||
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2025 Calculation
Equity turnover
= (SalesQ1 2025
+ SalesQ4 2024
+ SalesQ3 2024
+ SalesQ2 2024)
÷ Total Linde plc shareholders’ equity
= (8,112 + 8,282 + 8,356 + 8,267)
÷ 38,032 = 0.87
2 Click competitor name to see calculations.
The financial data reveals several noteworthy trends over the periods analyzed.
- Sales
- Sales figures display a generally upward trend from March 2020 through December 2021, increasing from approximately 6,739 million USD to 8,298 million USD. After peaking in December 2021, sales fluctuate moderately but remain relatively stable around the 8,100 to 8,356 million USD range through March 2025. A slight decline is observed at the end of the period, falling to 8,112 million USD in March 2025.
- Total Linde plc shareholders’ equity
- Shareholders’ equity shows a declining pattern throughout the time frame. Starting at roughly 44,776 million USD in March 2020, equity experiences some fluctuations but generally trends downward, reaching about 38,032 million USD by March 2025. The most significant decreases occur between March 2021 and September 2022, with some recovery thereafter, but the overall trajectory remains negative.
- Equity turnover ratio
- The equity turnover ratio indicates an increasing efficiency in the use of equity to generate sales. From a low of 0.58 in September 2020, the ratio rises steadily, reaching a peak around 0.87 by March 2025. This suggests that the company is generating more revenue per unit of shareholders’ equity over time, despite the declining equity base.
In summary, the company experiences steady growth in sales alongside a decreasing trend in shareholders’ equity. The increase in equity turnover ratio points to improved capital efficiency, implying that each dollar of equity is producing higher sales. However, the declining equity base could pose risks to financial stability if the trend continues. The sales plateau and slight decline at the end of the period may warrant monitoring to ensure sustained growth.