Stock Analysis on Net

Linde plc (NASDAQ:LIN)

Analysis of Solvency Ratios

Microsoft Excel

Solvency Ratios (Summary)

Linde plc, solvency ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Debt Ratios
Debt to equity 0.49 0.45 0.33 0.34 0.28
Debt to equity (including operating lease liability) 0.51 0.47 0.35 0.36 0.30
Debt to capital 0.33 0.31 0.25 0.26 0.22
Debt to capital (including operating lease liability) 0.34 0.32 0.26 0.27 0.23
Debt to assets 0.24 0.23 0.18 0.18 0.16
Debt to assets (including operating lease liability) 0.25 0.24 0.19 0.20 0.17
Financial leverage 2.03 1.99 1.85 1.86 1.76
Coverage Ratios
Interest coverage 21.54 32.75 45.60 21.41 21.27
Fixed charge coverage 12.98 13.32 13.02 7.79 6.92

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).

Solvency ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. Linde plc debt to equity ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Debt to equity ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. Linde plc debt to equity ratio (including operating lease liability) deteriorated from 2021 to 2022 and from 2022 to 2023.
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. Linde plc debt to capital ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Debt to capital ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. Linde plc debt to capital ratio (including operating lease liability) deteriorated from 2021 to 2022 and from 2022 to 2023.
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Linde plc debt to assets ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Debt to assets ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. Linde plc debt to assets ratio (including operating lease liability) deteriorated from 2021 to 2022 and from 2022 to 2023.
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Linde plc financial leverage ratio increased from 2021 to 2022 and from 2022 to 2023.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Linde plc interest coverage ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. Linde plc fixed charge coverage ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Debt to Equity

Linde plc, debt to equity 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)
Short-term debt 4,713 4,117 1,163 3,251 1,732
Current portion of long-term debt 1,263 1,599 1,709 751 1,531
Current finance lease liabilities 50 42 47 38
Long-term debt, excluding current portion 13,397 12,198 11,335 12,152 10,693
Long-term finance lease liabilities 143 114 129 125
Total debt 19,566 18,070 14,383 16,317 13,956
 
Total Linde plc shareholders’ equity 39,720 40,028 44,035 47,317 49,074
Solvency Ratio
Debt to equity1 0.49 0.45 0.33 0.34 0.28
Benchmarks
Debt to Equity, Industry
Materials 0.45 0.46 0.38 0.41 0.38

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
Debt to equity = Total debt ÷ Total Linde plc shareholders’ equity
= 19,566 ÷ 39,720 = 0.49

Solvency ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. Linde plc debt to equity ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Debt to Equity (including Operating Lease Liability)

Linde plc, debt to equity (including operating lease liability) 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)
Short-term debt 4,713 4,117 1,163 3,251 1,732
Current portion of long-term debt 1,263 1,599 1,709 751 1,531
Current finance lease liabilities 50 42 47 38
Long-term debt, excluding current portion 13,397 12,198 11,335 12,152 10,693
Long-term finance lease liabilities 143 114 129 125
Total debt 19,566 18,070 14,383 16,317 13,956
Current operating lease liabilities 177 181 215 237 260
Long-term operating lease liabilities 572 540 618 669 716
Total debt (including operating lease liability) 20,315 18,791 15,216 17,223 14,932
 
Total Linde plc shareholders’ equity 39,720 40,028 44,035 47,317 49,074
Solvency Ratio
Debt to equity (including operating lease liability)1 0.51 0.47 0.35 0.36 0.30
Benchmarks
Debt to Equity (including Operating Lease Liability), Industry
Materials 0.46 0.48 0.39 0.42 0.40

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
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Total Linde plc shareholders’ equity
= 20,315 ÷ 39,720 = 0.51

Solvency ratio Description The company
Debt to equity ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. Linde plc debt to equity ratio (including operating lease liability) deteriorated from 2021 to 2022 and from 2022 to 2023.

Debt to Capital

Linde plc, debt to capital 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)
Short-term debt 4,713 4,117 1,163 3,251 1,732
Current portion of long-term debt 1,263 1,599 1,709 751 1,531
Current finance lease liabilities 50 42 47 38
Long-term debt, excluding current portion 13,397 12,198 11,335 12,152 10,693
Long-term finance lease liabilities 143 114 129 125
Total debt 19,566 18,070 14,383 16,317 13,956
Total Linde plc shareholders’ equity 39,720 40,028 44,035 47,317 49,074
Total capital 59,286 58,098 58,418 63,634 63,030
Solvency Ratio
Debt to capital1 0.33 0.31 0.25 0.26 0.22
Benchmarks
Debt to Capital, Industry
Materials 0.31 0.32 0.27 0.29 0.28

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
Debt to capital = Total debt ÷ Total capital
= 19,566 ÷ 59,286 = 0.33

Solvency ratio Description The company
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. Linde plc debt to capital ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Debt to Capital (including Operating Lease Liability)

Linde plc, debt to capital (including operating lease liability) 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)
Short-term debt 4,713 4,117 1,163 3,251 1,732
Current portion of long-term debt 1,263 1,599 1,709 751 1,531
Current finance lease liabilities 50 42 47 38
Long-term debt, excluding current portion 13,397 12,198 11,335 12,152 10,693
Long-term finance lease liabilities 143 114 129 125
Total debt 19,566 18,070 14,383 16,317 13,956
Current operating lease liabilities 177 181 215 237 260
Long-term operating lease liabilities 572 540 618 669 716
Total debt (including operating lease liability) 20,315 18,791 15,216 17,223 14,932
Total Linde plc shareholders’ equity 39,720 40,028 44,035 47,317 49,074
Total capital (including operating lease liability) 60,035 58,819 59,251 64,540 64,006
Solvency Ratio
Debt to capital (including operating lease liability)1 0.34 0.32 0.26 0.27 0.23
Benchmarks
Debt to Capital (including Operating Lease Liability), Industry
Materials 0.32 0.32 0.28 0.30 0.29

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
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 20,315 ÷ 60,035 = 0.34

Solvency ratio Description The company
Debt to capital ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. Linde plc debt to capital ratio (including operating lease liability) deteriorated from 2021 to 2022 and from 2022 to 2023.

Debt to Assets

Linde plc, debt to assets 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)
Short-term debt 4,713 4,117 1,163 3,251 1,732
Current portion of long-term debt 1,263 1,599 1,709 751 1,531
Current finance lease liabilities 50 42 47 38
Long-term debt, excluding current portion 13,397 12,198 11,335 12,152 10,693
Long-term finance lease liabilities 143 114 129 125
Total debt 19,566 18,070 14,383 16,317 13,956
 
Total assets 80,811 79,658 81,605 88,229 86,612
Solvency Ratio
Debt to assets1 0.24 0.23 0.18 0.18 0.16
Benchmarks
Debt to Assets, Industry
Materials 0.20 0.21 0.18 0.19 0.18

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
Debt to assets = Total debt ÷ Total assets
= 19,566 ÷ 80,811 = 0.24

Solvency ratio Description The company
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Linde plc debt to assets ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Debt to Assets (including Operating Lease Liability)

Linde plc, debt to assets (including operating lease liability) 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)
Short-term debt 4,713 4,117 1,163 3,251 1,732
Current portion of long-term debt 1,263 1,599 1,709 751 1,531
Current finance lease liabilities 50 42 47 38
Long-term debt, excluding current portion 13,397 12,198 11,335 12,152 10,693
Long-term finance lease liabilities 143 114 129 125
Total debt 19,566 18,070 14,383 16,317 13,956
Current operating lease liabilities 177 181 215 237 260
Long-term operating lease liabilities 572 540 618 669 716
Total debt (including operating lease liability) 20,315 18,791 15,216 17,223 14,932
 
Total assets 80,811 79,658 81,605 88,229 86,612
Solvency Ratio
Debt to assets (including operating lease liability)1 0.25 0.24 0.19 0.20 0.17
Benchmarks
Debt to Assets (including Operating Lease Liability), Industry
Materials 0.21 0.21 0.18 0.20 0.19

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
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 20,315 ÷ 80,811 = 0.25

Solvency ratio Description The company
Debt to assets ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. Linde plc debt to assets ratio (including operating lease liability) deteriorated from 2021 to 2022 and from 2022 to 2023.

Financial Leverage

Linde plc, financial leverage 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)
Total assets 80,811 79,658 81,605 88,229 86,612
Total Linde plc shareholders’ equity 39,720 40,028 44,035 47,317 49,074
Solvency Ratio
Financial leverage1 2.03 1.99 1.85 1.86 1.76
Benchmarks
Financial Leverage, Industry
Materials 2.21 2.26 2.13 2.13 2.10

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
Financial leverage = Total assets ÷ Total Linde plc shareholders’ equity
= 80,811 ÷ 39,720 = 2.03

Solvency ratio Description The company
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Linde plc financial leverage ratio increased from 2021 to 2022 and from 2022 to 2023.

Interest Coverage

Linde plc, interest coverage 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)
Net income, Linde plc 6,199 4,147 3,826 2,501 2,285
Add: Net income attributable to noncontrolling interest 142 134 135 125 96
Less: Income from discontinued operations, net of tax 5 4 109
Add: Income tax expense 1,814 1,434 1,262 847 769
Add: Interest expense 397 180 117 170 150
Earnings before interest and tax (EBIT) 8,552 5,895 5,335 3,639 3,191
Solvency Ratio
Interest coverage1 21.54 32.75 45.60 21.41 21.27
Benchmarks
Interest Coverage, Industry
Materials 11.57 13.94 15.26 9.00 7.67

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
Interest coverage = EBIT ÷ Interest expense
= 8,552 ÷ 397 = 21.54

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Linde plc interest coverage ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Fixed Charge Coverage

Linde plc, fixed charge coverage 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)
Net income, Linde plc 6,199 4,147 3,826 2,501 2,285
Add: Net income attributable to noncontrolling interest 142 134 135 125 96
Less: Income from discontinued operations, net of tax 5 4 109
Add: Income tax expense 1,814 1,434 1,262 847 769
Add: Interest expense 397 180 117 170 150
Earnings before interest and tax (EBIT) 8,552 5,895 5,335 3,639 3,191
Add: Lease and rental expenses related to operating lease right of use assets 284 284 317 341 364
Earnings before fixed charges and tax 8,836 6,179 5,652 3,980 3,555
 
Interest expense 397 180 117 170 150
Lease and rental expenses related to operating lease right of use assets 284 284 317 341 364
Fixed charges 681 464 434 511 514
Solvency Ratio
Fixed charge coverage1 12.98 13.32 13.02 7.79 6.92
Benchmarks
Fixed Charge Coverage, Industry
Materials 9.08 10.45 10.86 6.54 5.49

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
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 8,836 ÷ 681 = 12.98

Solvency ratio Description The company
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. Linde plc fixed charge coverage ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.