Linde plc Ordinary Shares (LIN)

Activity ratios

Short-term

Turnover ratios

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover	8.81	8.27	9.83	10.12	8.90
Receivables turnover	—	—	—	—	—
Payables turnover	—	—	—	—	—
Working capital turnover	—	—	—	—	—

Based on the provided data for Linde plc Ordinary Shares, let's analyze the activity ratios:

1. Inventory Turnover:
- The inventory turnover ratio measures how many times a company sells its average inventory balance during a specific period.
- In 2020, the inventory turnover ratio was 8.90, indicating that the company's inventory was sold and replenished approximately 8.90 times during the year.
- The ratio improved to 10.12 in 2021, showing an increase in the efficiency of managing inventory turnover.
- In 2022, the ratio slightly decreased to 9.83 but remained at a relatively high level.
- By 2023, the ratio dropped to 8.27, suggesting that inventory turnover slowed down compared to the previous year.
- In 2024, the ratio improved slightly to 8.81 but remained lower than the peak in 2021.

2. Receivables Turnover:
- The receivables turnover ratio measures how efficiently a company collects its outstanding receivables during a specific period.
- The data provided shows that information regarding receivables turnover is unavailable for the years 2020 to 2024, indicated by "—". Without this data, it is not possible to assess the effectiveness of the company in collecting receivables.

3. Payables Turnover:
- The payables turnover ratio measures how quickly a company pays off its suppliers or trade payables during a specific period.
- Similar to receivables turnover, the data indicates that information on payables turnover is unavailable from 2020 to 2024, as denoted by "—". This makes it challenging to evaluate the company's efficiency in managing its payables.

4. Working Capital Turnover:
- The working capital turnover ratio calculates how efficiently a company utilizes its working capital to generate sales.
- The data provided indicates that information on working capital turnover is not available for the years 2020 to 2024, as represented by "—". Without this data, the assessment of how effectively the company is using its working capital to drive revenue is not feasible.

In conclusion, based on the inventory turnover data provided, it appears that Linde plc Ordinary Shares has shown varying levels of efficiency in managing its inventory turnover over the years. However, without data on receivables turnover, payables turnover, and working capital turnover, a comprehensive analysis of the company's overall activity ratios and efficiency in managing working capital is limited.

Average number of days

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Days of inventory on hand (DOH)	days	41.43	44.13	37.12	36.06	41.02
Days of sales outstanding (DSO)	days	—	—	—	—	—
Number of days of payables	days	—	—	—	—	—

Activity ratios measure how efficiently a company manages its resources to generate sales. Let's analyze Linde plc Ordinary Shares based on the activity ratios provided:

1. Days of Inventory on Hand (DOH):
- The DOH shows the average number of days it takes for a company to sell its inventory. A lower DOH is generally favorable as it indicates faster inventory turnover.
- Linde plc's DOH decreased from 41.02 days in 2020 to 36.06 days in 2021, suggesting improved inventory management efficiency.
- However, there was a slight increase to 37.12 days in 2022 before a more significant rise to 44.13 days in 2023, indicating potential inventory management challenges during those years.
- In 2024, the DOH decreased slightly to 41.43 days, but it remains higher than the initial period in 2020.

2. Days of Sales Outstanding (DSO):
- The DSO ratio reflects how long it takes for a company to collect its accounts receivable. A lower DSO is preferable as it indicates faster cash collection.
- The data provided does not include specific numbers for DSO, which could indicate that this metric may not be relevant or available for analysis.

3. Number of Days of Payables:
- This ratio shows the average number of days a company takes to pay its suppliers. A longer period indicates that the company is taking longer to settle its payables, which can be advantageous for cash flow management.
- The data provided does not include specific numbers for the number of days of payables, so it is challenging to assess Linde plc's payables turnover efficiency based on this information.

In conclusion, based on the available information, Linde plc's inventory management efficiency improved initially but faced challenges in later years. Further data on sales outstanding and payables turnover would provide a more comprehensive analysis of the company's overall activity ratios and efficiency.

Long-term

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Fixed asset turnover	—	—	1.42	1.18	0.95
Total asset turnover	0.41	0.41	0.42	0.38	0.31

Linde plc's long-term activity ratios reflect its efficiency in utilizing fixed assets and total assets to generate sales revenue over the years. The fixed asset turnover ratio has shown a positive trend, increasing from 0.95 in 2020 to 1.42 in 2022. This indicates that the company generated more revenue per dollar of fixed assets invested, showing improved efficiency in utilizing its long-term assets for production and operations.

In contrast, the total asset turnover ratio, which measures how effectively the company generates sales from its total assets, has remained relatively stable. It increased slightly from 0.31 in 2020 to 0.42 in 2022 before stabilizing at 0.41 in 2023 and 2024. Despite the stable trend, the company could potentially focus on optimizing the utilization of its total assets to generate more sales in the long term.

Overall, the increasing trend in the fixed asset turnover ratio signifies improved efficiency in utilizing long-term assets, whereas the stable total asset turnover ratio suggests Linde plc could further enhance its asset utilization to drive sales growth in the future.