Linde plc (NASDAQ:LIN)

The analysis of the financial turnover ratios over the reported periods reveals several key trends and patterns:

Net Fixed Asset Turnover

This ratio shows a clear upward trend from March 2021 through December 2022, rising from 0.95 to a peak of 1.49. This increase indicates an improving efficiency in using net fixed assets to generate sales during that interval. However, from March 2023 onwards, this ratio exhibits a gradual decline, stabilizing around 1.34 in the mid-2024 periods before descending slightly below 1.30 by mid-2025. This pattern suggests that the efficiency gains achieved in earlier periods faced some erosion or asset base expansion without a proportionate increase in revenue in the later periods.

Total Asset Turnover

The total asset turnover ratio demonstrates a generally consistent increase from 0.31 in March 2021 to a high of 0.45 in December 2021. This improvement over the course of 2021 reflects enhanced utilization of total assets to drive revenues. Following the peak, the ratio decreases modestly and stabilizes around 0.40 to 0.42 from early 2022 through the mid-2025 periods. The relative stability in recent periods may indicate a steady state in asset usage efficiency, with no significant gains or losses in the ability to convert assets into sales.

Equity Turnover

The equity turnover ratio steadily increases from 0.58 in March 2021 to 0.90 by December 2021, showing a notable rise in revenue generated per unit of equity. After reaching this peak, the ratio experiences a correction downward to approximately 0.83 in subsequent quarters, where it remains quite stable through 2023 and 2024, with minor fluctuations around this level. Toward the latest periods, the ratio again trends slightly upward, approaching 0.87 by mid-2025. The initial growth followed by stabilization suggests periods of enhanced equity efficiency followed by consolidation, with possible fluctuations reflecting changes in equity or revenue dynamics.

In summary, the turnover ratios reflect a period of improving asset and equity utilization from 2021 through 2022, followed by a phase of stabilization and slight decline in asset-related turnover while equity turnover remains relatively steady with a mild upward tendency near the end of the analysis period. These trends imply that after initial efficiency gains, the company faced some challenges in further improving asset productivity but maintained relatively consistent equity efficiency over the longer term.

Sales Trends

Sales exhibit notable fluctuations over the observed periods. Initially, sales decreased from approximately 6,739 million USD in March 2020 to 6,377 million USD in June 2020, followed by a rebound and general upward trend, peaking near 8,797 million USD in September 2022. After this peak, sales show some volatility with minor declines and recoveries, ending near 8,495 million USD in June 2025. The overall pattern indicates recovery and growth after early 2020 declines, with a tendency to stabilize at a higher level than the initial period.

Property, Plant and Equipment, Net

The net value of property, plant, and equipment demonstrates a downward trend from March 2020 through September 2022, decreasing from about 27,418 million USD to 22,586 million USD. Post this low point, there is a gradual recovery, with values rising back up to approximately 26,928 million USD by June 2025. This suggests divestitures or depreciation impacted the asset base initially, followed by reinvestment or capital growth in the later periods.

Net Fixed Asset Turnover Ratio

Net fixed asset turnover has been measured from September 2020 onwards. The ratio shows a steady upward progression, starting around 0.95 and reaching a peak of approximately 1.49 in September 2022. Following this peak, the ratio declines gradually to about 1.23 by June 2025. This indicates increased efficiency in utilizing fixed assets to generate sales up to late 2022, with a subtle reduction in efficiency or asset base growth exceeding sales growth afterward.

Overall Insight

The company appears to have undergone a phase of asset reduction alongside increasing sales efficiencies until late 2022. The subsequent increase in property and equipment value coupled with a plateau and slight decline in asset turnover suggests a strategic reinvestment or expansion while managing sales growth. Sales remain robust, signaling stable market demand despite some variability. The trends imply careful balancing of asset management to support sustained revenue generation.

The sales figures demonstrate a general upward trajectory with fluctuations over the observed periods. Starting from 6,739 million USD in the first quarter of 2020, sales experienced minor declines and rises but showed overall growth, reaching peaks around the fourth quarter of 2021 with 8,298 million USD. Thereafter, sales showed some volatility yet maintained a relatively stable range between 8,000 and 8,500 million USD through the latest quarters up to mid-2025.

Total assets show a declining trend from early 2020 through approximately the third quarter of 2022, dropping from 84,369 million USD to a low near 74,323 million USD. This period was followed by recovery phases as total assets gradually increased again to peak around 86,078 million USD by mid-2025. The fluctuations imply periodic asset restructuring or changes in capital allocation.

The total asset turnover ratio, which measures efficiency in utilizing assets to generate sales, reveals a steady improvement from around 0.31 in late 2020 through the course of 2021 and 2022, peaking near 0.45. After this peak, the ratio stabilizes around the 0.40 to 0.42 mark in subsequent quarters, indicating a higher and sustained efficiency level compared to earlier periods.

Sales Trend

Overall growth with seasonal volatility, peaking in late 2021 and stabilizing thereafter.

Total Assets Trend

Decreasing trend early on followed by recovery and growth toward mid-2025.

Total Asset Turnover Trend

Marked improvement from 2020 to 2022 with stabilization at higher efficiency levels afterwards.

The analysis of the quarterly financial data reveals several notable trends in the sales figures, shareholders’ equity, and equity turnover over the observed periods.

Sales

Sales exhibited some fluctuations but generally showed a gradual upward trend from March 31, 2020, through June 30, 2025. The sales started at $6,739 million and reached a high of $8,797 million by September 30, 2022. A slight decline followed in December 2022, after which sales stabilized around the $8,100 to $8,500 million range. The latter quarters, including the first half of 2025, displayed some volatility but overall maintained a relatively high level compared to the early years of the period.

Total Linde plc Shareholders’ Equity

Shareholders’ equity experienced a downward trend over the period. Starting at $44,776 million in March 2020, it saw a moderate decline punctuated by some minor fluctuations. By June 2025, the equity had fallen to $38,515 million. The most notable decreases occurred in the middle quarters of 2022, where equity declined from $42,963 million in March to $37,628 million in September 2022, before a slight recovery towards the end of 2022 and stabilization around the $38,000 to $40,000 million mark in subsequent quarters. This overall decline suggests a potential reduction in net assets or an increase in liabilities over the timeframe.

Equity Turnover

Equity turnover, which measures how efficiently the equity base is used to generate sales, showed a general upward trend during the periods recorded. The data begins at 0.58 without values from earlier periods but increases steadily to approximately 0.9 by December 2021. After this peak, equity turnover somewhat stabilized between 0.83 and 0.87, showing consistent efficiency in utilizing equity for generating sales. This indicates improved asset utilization despite the decline in shareholders’ equity, reflecting stronger operational performance and effective resource management towards the latter part of the data series.

In summary, sales growth and improved equity turnover suggest operational improvements and stronger sales generation capacity, while the declining shareholders’ equity indicates caution concerning the company’s net asset base. The data reflects a complex interplay between maintaining sales momentum and managing equity levels over the observed quarters.