Linde plc Ordinary Shares (LIN)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	32,607,000	33,283,000	30,594,000	26,960,000	28,135,000
Property, plant and equipment	US$ in thousands	24,552,000	23,548,000	26,003,000	28,711,000	29,064,000
Fixed asset turnover		1.33	1.41	1.18	0.94	0.97

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $32,607,000K ÷ $24,552,000K
= 1.33

The fixed asset turnover ratio for Linde Plc. has shown fluctuating trends over the past five years. In 2023, the ratio decreased to 1.34 from 1.42 in the previous year, indicating that the company generated $1.34 in revenue for every $1 of fixed assets invested. This decline in the ratio may suggest either a decrease in sales generated from fixed assets or an increase in the value of fixed assets on the company's balance sheet.

Compared to 2021, where the ratio was 1.18, there was an improvement in 2023. This indicates that the company was able to utilize its fixed assets more efficiently to generate revenue in 2023. Similarly, in 2020 and 2019, the company's fixed asset turnover ratios were 0.95 and 0.97, respectively, showing an upward trend in utilizing fixed assets efficiently over these years.

Overall, the fluctuating trend in Linde Plc.'s fixed asset turnover ratio suggests varying levels of efficiency in generating revenue from its fixed assets over the past five years. Further analysis of the company's operational strategies, investments in fixed assets, and sales performance would be needed to understand the reasons behind these fluctuations and to identify potential areas for improvement.