Stock Analysis on Net
Stock Analysis on Net

Linde plc (NASDAQ:LIN)

Analysis of Short-term (Operating) Activity Ratios
Quarterly Data

Microsoft Excel

Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.

Short-term Activity Ratios (Summary)

Linde plc, short-term (operating) activity ratios (quarterly data)

Microsoft Excel
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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Turnover Ratios
Inventory turnover 8.27 8.42 8.88 9.29 9.83 10.75 10.66 10.36 10.12 9.86 9.56 9.20 8.90 8.93 9.16 9.69 9.81 — — —
Receivables turnover 6.96 6.92 6.90 7.02 7.32 7.34 6.79 6.56 6.84 6.82 6.67 6.70 6.54 6.71 6.81 6.86 6.53 — — —
Payables turnover 5.79 6.36 6.20 6.49 6.49 6.50 5.66 5.40 5.01 5.44 5.14 5.30 4.97 5.33 5.58 5.52 5.10 — — —
Working capital turnover — — — — — — — — — — — — — — — — — — — —
Average No. Days
Average inventory processing period 44 43 41 39 37 34 34 35 36 37 38 40 41 41 40 38 37 — — —
Add: Average receivable collection period 52 53 53 52 50 50 54 56 53 54 55 54 56 54 54 53 56 — — —
Operating cycle 96 96 94 91 87 84 88 91 89 91 93 94 97 95 94 91 93 — — —
Less: Average payables payment period 63 57 59 56 56 56 64 68 73 67 71 69 73 68 65 66 72 — — —
Cash conversion cycle 33 39 35 35 31 28 24 23 16 24 22 25 24 27 29 25 21 — — —

Based on: 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), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Linde plc inventory turnover ratio deteriorated from Q2 2023 to Q3 2023 and from Q3 2023 to Q4 2023.
Receivables turnover An activity ratio equal to revenue divided by receivables. Linde plc receivables turnover ratio improved from Q2 2023 to Q3 2023 and from Q3 2023 to Q4 2023.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Linde plc payables turnover ratio increased from Q2 2023 to Q3 2023 but then decreased significantly from Q3 2023 to Q4 2023.
Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. Linde plc number of days of inventory outstanding deteriorated from Q2 2023 to Q3 2023 and from Q3 2023 to Q4 2023.
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover.
Operating cycle Equal to average inventory processing period plus average receivables collection period.
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. Linde plc number of days of payables outstanding decreased from Q2 2023 to Q3 2023 but then increased from Q3 2023 to Q4 2023 exceeding Q2 2023 level.
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. Linde plc cash conversion cycle deteriorated from Q2 2023 to Q3 2023 but then improved from Q3 2023 to Q4 2023 exceeding Q2 2023 level.

Inventory Turnover

Linde plc, inventory turnover calculation (quarterly data)

Microsoft Excel
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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Selected Financial Data (US$ in millions)
Cost of sales, exclusive of depreciation and amortization 4,431 4,314 4,316 4,431 4,427 5,285 4,940 4,798 4,927 4,368 4,194 4,054 4,086 3,835 3,619 3,843 4,187 4,061 4,280 4,116
Inventories 2,115 2,078 2,079 2,054 1,978 1,855 1,786 1,766 1,733 1,694 1,692 1,695 1,729 1,733 1,715 1,689 1,697 1,653 1,708 1,667
Short-term Activity Ratio
Inventory turnover1 8.27 8.42 8.88 9.29 9.83 10.75 10.66 10.36 10.12 9.86 9.56 9.20 8.90 8.93 9.16 9.69 9.81 — — —

Based on: 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), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

1 Q4 2023 Calculation
Inventory turnover = (Cost of sales, exclusive of depreciation and amortizationQ4 2023 + Cost of sales, exclusive of depreciation and amortizationQ3 2023 + Cost of sales, exclusive of depreciation and amortizationQ2 2023 + Cost of sales, exclusive of depreciation and amortizationQ1 2023) ÷ Inventories
= (4,431 + 4,314 + 4,316 + 4,431) ÷ 2,115 = 8.27

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Linde plc inventory turnover ratio deteriorated from Q2 2023 to Q3 2023 and from Q3 2023 to Q4 2023.

Receivables Turnover

Linde plc, receivables turnover calculation (quarterly data)

Microsoft Excel
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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Selected Financial Data (US$ in millions)
Sales 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 7,080 7,000 7,204 6,944
Accounts receivable, net 4,718 4,692 4,799 4,753 4,559 4,599 4,803 4,845 4,499 4,367 4,342 4,139 4,167 4,033 3,994 4,084 4,322 4,238 4,483 4,390
Short-term Activity Ratio
Receivables turnover1 6.96 6.92 6.90 7.02 7.32 7.34 6.79 6.56 6.84 6.82 6.67 6.70 6.54 6.71 6.81 6.86 6.53 — — —

Based on: 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), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

1 Q4 2023 Calculation
Receivables turnover = (SalesQ4 2023 + SalesQ3 2023 + SalesQ2 2023 + SalesQ1 2023) ÷ Accounts receivable, net
= (8,302 + 8,155 + 8,204 + 8,193) ÷ 4,718 = 6.96

Short-term activity ratio Description The company
Receivables turnover An activity ratio equal to revenue divided by receivables. Linde plc receivables turnover ratio improved from Q2 2023 to Q3 2023 and from Q3 2023 to Q4 2023.

Payables Turnover

Linde plc, payables turnover calculation (quarterly data)

Microsoft Excel
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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Selected Financial Data (US$ in millions)
Cost of sales, exclusive of depreciation and amortization 4,431 4,314 4,316 4,431 4,427 5,285 4,940 4,798 4,927 4,368 4,194 4,054 4,086 3,835 3,619 3,843 4,187 4,061 4,280 4,116
Accounts payable 3,020 2,750 2,977 2,941 2,995 3,067 3,360 3,387 3,503 3,069 3,143 2,945 3,095 2,903 2,816 2,965 3,266 3,071 3,358 3,166
Short-term Activity Ratio
Payables turnover1 5.79 6.36 6.20 6.49 6.49 6.50 5.66 5.40 5.01 5.44 5.14 5.30 4.97 5.33 5.58 5.52 5.10 — — —

Based on: 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), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

1 Q4 2023 Calculation
Payables turnover = (Cost of sales, exclusive of depreciation and amortizationQ4 2023 + Cost of sales, exclusive of depreciation and amortizationQ3 2023 + Cost of sales, exclusive of depreciation and amortizationQ2 2023 + Cost of sales, exclusive of depreciation and amortizationQ1 2023) ÷ Accounts payable
= (4,431 + 4,314 + 4,316 + 4,431) ÷ 3,020 = 5.79

Short-term activity ratio Description The company
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Linde plc payables turnover ratio increased from Q2 2023 to Q3 2023 but then decreased significantly from Q3 2023 to Q4 2023.

Working Capital Turnover

Linde plc, working capital turnover calculation (quarterly data)

Microsoft Excel
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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Selected Financial Data (US$ in millions)
Current assets 12,620 11,737 11,411 12,904 13,047 11,203 11,272 12,257 10,159 12,007 10,446 11,132 10,924 12,265 12,073 11,513 10,352 9,812 10,681 15,088
Less: Current liabilities 15,717 14,162 14,552 17,785 16,479 15,061 15,295 14,506 13,643 14,758 14,676 15,027 13,740 14,792 15,095 15,490 12,160 10,883 10,521 11,140
Working capital (3,097) (2,425) (3,141) (4,881) (3,432) (3,858) (4,023) (2,249) (3,484) (2,751) (4,230) (3,895) (2,816) (2,527) (3,022) (3,977) (1,808) (1,071) 160 3,948
 
Sales 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 7,080 7,000 7,204 6,944
Short-term Activity Ratio
Working capital turnover1 — — — — — — — — — — — — — — — — — — — —

Based on: 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), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

1 Q4 2023 Calculation
Working capital turnover = (SalesQ4 2023 + SalesQ3 2023 + SalesQ2 2023 + SalesQ1 2023) ÷ Working capital
= (8,302 + 8,155 + 8,204 + 8,193) ÷ -3,097 = —

Average Inventory Processing Period

Linde plc, average inventory processing period calculation (quarterly data)

Microsoft Excel
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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Selected Financial Data
Inventory turnover 8.27 8.42 8.88 9.29 9.83 10.75 10.66 10.36 10.12 9.86 9.56 9.20 8.90 8.93 9.16 9.69 9.81 — — —
Short-term Activity Ratio (no. days)
Average inventory processing period1 44 43 41 39 37 34 34 35 36 37 38 40 41 41 40 38 37 — — —

Based on: 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), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

1 Q4 2023 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 8.27 = 44

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. Linde plc number of days of inventory outstanding deteriorated from Q2 2023 to Q3 2023 and from Q3 2023 to Q4 2023.

Average Receivable Collection Period

Linde plc, average receivable collection period calculation (quarterly data)

Microsoft Excel
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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Selected Financial Data
Receivables turnover 6.96 6.92 6.90 7.02 7.32 7.34 6.79 6.56 6.84 6.82 6.67 6.70 6.54 6.71 6.81 6.86 6.53 — — —
Short-term Activity Ratio (no. days)
Average receivable collection period1 52 53 53 52 50 50 54 56 53 54 55 54 56 54 54 53 56 — — —

Based on: 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), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

1 Q4 2023 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 6.96 = 52

Short-term activity ratio Description The company
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover.

Operating Cycle

Linde plc, operating cycle calculation (quarterly data)

No. days

Microsoft Excel
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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Selected Financial Data
Average inventory processing period 44 43 41 39 37 34 34 35 36 37 38 40 41 41 40 38 37 — — —
Average receivable collection period 52 53 53 52 50 50 54 56 53 54 55 54 56 54 54 53 56 — — —
Short-term Activity Ratio
Operating cycle1 96 96 94 91 87 84 88 91 89 91 93 94 97 95 94 91 93 — — —

Based on: 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), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

1 Q4 2023 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 44 + 52 = 96

Short-term activity ratio Description The company
Operating cycle Equal to average inventory processing period plus average receivables collection period.

Average Payables Payment Period

Linde plc, average payables payment period calculation (quarterly data)

Microsoft Excel
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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Selected Financial Data
Payables turnover 5.79 6.36 6.20 6.49 6.49 6.50 5.66 5.40 5.01 5.44 5.14 5.30 4.97 5.33 5.58 5.52 5.10 — — —
Short-term Activity Ratio (no. days)
Average payables payment period1 63 57 59 56 56 56 64 68 73 67 71 69 73 68 65 66 72 — — —

Based on: 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), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

1 Q4 2023 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 5.79 = 63

Short-term activity ratio Description The company
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. Linde plc number of days of payables outstanding decreased from Q2 2023 to Q3 2023 but then increased from Q3 2023 to Q4 2023 exceeding Q2 2023 level.

Cash Conversion Cycle

Linde plc, cash conversion cycle calculation (quarterly data)

No. days

Microsoft Excel
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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Selected Financial Data
Average inventory processing period 44 43 41 39 37 34 34 35 36 37 38 40 41 41 40 38 37 — — —
Average receivable collection period 52 53 53 52 50 50 54 56 53 54 55 54 56 54 54 53 56 — — —
Average payables payment period 63 57 59 56 56 56 64 68 73 67 71 69 73 68 65 66 72 — — —
Short-term Activity Ratio
Cash conversion cycle1 33 39 35 35 31 28 24 23 16 24 22 25 24 27 29 25 21 — — —

Based on: 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), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

1 Q4 2023 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 44 + 52 – 63 = 33

Short-term activity ratio Description The company
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. Linde plc cash conversion cycle deteriorated from Q2 2023 to Q3 2023 but then improved from Q3 2023 to Q4 2023 exceeding Q2 2023 level.