Linde plc Ordinary Shares (LIN)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 24,479,000 | 27,553,000 | 25,448,000 | 23,646,000 | 25,574,000 |
| Payables | US$ in thousands | 3,020,000 | 2,995,000 | 3,503,000 | 3,095,000 | 3,266,000 |
| Payables turnover | 8.11 | 9.20 | 7.26 | 7.64 | 7.83 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $24,479,000K ÷ $3,020,000K
= 8.11
The payables turnover ratio for Linde Plc. has shown fluctuating trends over the past five years. In 2023, the payables turnover ratio decreased to 5.79 from 6.49 in 2022. This indicates that the company took longer to pay off its trade payables in 2023 compared to 2022.
The average number of times Linde Plc. paid off its trade payables in 2023 was approximately 5.79 times during the year. Although this ratio decreased from the previous year, it remains relatively stable compared to the ratios in 2021, 2020, and 2019, which were 5.01, 4.97, and 5.10, respectively.
A higher payables turnover ratio typically suggests that the company is efficient in managing its trade payables and has good liquidity. However, a lower ratio may indicate that the company is taking longer to pay its suppliers, which could affect relationships or indicate possible cash flow issues. Overall, Linde Plc. may need to monitor its payables turnover ratio and ensure it maintains an optimal balance between timely payments and managing cash flow effectively.
Peer comparison
Dec 31, 2023