Linde plc Ordinary Shares (LIN)
Payables turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 24,479,000 | 24,428,000 | 25,436,000 | 27,083,000 | 27,553,000 | 28,296,000 | 26,374,000 | 23,812,000 | 23,118,000 | 22,494,000 | 21,960,000 | 21,372,000 | 21,354,000 | 20,482,000 | 21,073,000 | 21,836,000 | 18,021,000 | 13,568,000 | 8,671,000 | 3,632,000 |
| Payables | US$ in thousands | 3,020,000 | 2,750,000 | 2,977,000 | 2,941,000 | 2,995,000 | 3,067,000 | 3,360,000 | 3,387,000 | 3,503,000 | 3,069,000 | 3,143,000 | 2,945,000 | 3,095,000 | 2,903,000 | 2,816,000 | 2,965,000 | 3,266,000 | 3,071,000 | 3,358,000 | 3,166,000 |
| Payables turnover | 8.11 | 8.88 | 8.54 | 9.21 | 9.20 | 9.23 | 7.85 | 7.03 | 6.60 | 7.33 | 6.99 | 7.26 | 6.90 | 7.06 | 7.48 | 7.36 | 5.52 | 4.42 | 2.58 | 1.15 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $24,479,000K ÷ $3,020,000K
= 8.11
Linde Plc.'s payables turnover has exhibited some fluctuations over the past eight quarters. The payables turnover ratio measures how efficiently a company is managing its trade payables by comparing the purchases made on credit to the average accounts payable during a specific period.
In Q4 2023, the payables turnover ratio decreased to 5.79 from the previous quarter Q3 2023's value of 6.36. This suggests that in Q4 2023, Linde Plc. took longer to pay off its suppliers compared to the previous quarter. However, it is important to note that a higher payables turnover ratio does not always indicate better performance as it could also signal stricter credit terms with suppliers or potential cash flow constraints.
Looking at the trend over the past eight quarters, the payables turnover ratio has generally been in the range of 5.40 to 6.50, indicating consistency in managing trade payables. This stability suggests that Linde Plc. has been maintaining a relatively efficient balance between paying off its trade payables promptly while also effectively managing its cash flow.
Overall, while there have been fluctuations in the payables turnover ratio, efforts to monitor and improve this metric can provide insights into Linde Plc.'s operational efficiency and ability to maintain healthy supplier relationships.
Peer comparison
Dec 31, 2023
See also:
Linde plc Ordinary Shares Payables Turnover (Quarterly Data)