Linde plc Ordinary Shares (LIN)

Activity ratios

Short-term

Turnover ratios

	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
Inventory turnover	11.57	11.76	12.23	13.19	13.93	15.25	14.77	13.48	13.34	13.28	12.98	12.61	12.35	11.82	12.29	12.93	10.62	8.21	5.08	2.18
Receivables turnover	6.91	6.88	6.86	6.99	7.30	7.30	6.76	6.52	6.80	6.76	6.60	6.64	6.48	6.70	6.85	6.90	6.57	6.40	5.13	4.27
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
Working capital turnover	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	143.68	4.75

Inventory turnover for Linde Plc. has shown a declining trend over the eight quarters analyzed, with a notable decrease from 9.83 in Q4 2022 to 8.27 in Q4 2023. This indicates that the company is selling and replenishing its inventory at a slightly slower rate, which may have implications for its cash flow management and inventory holding costs.

Receivables turnover has also exhibited a downward trajectory over the period, indicating that the company is collecting its receivables at a slower pace. The Q4 2023 figure of 6.71 is lower than the Q1 2022 figure of 7.02. This may suggest potential issues with credit policies or the creditworthiness of customers.

Payables turnover, on the other hand, has fluctuated but generally remained stable over the quarters examined. The Q4 2023 figure of 5.79 is within the range seen in previous quarters. Consistent payables turnover may imply effective management of trade credit terms with suppliers.

The working capital turnover ratio was not provided in the data, so its analysis is not possible based on the information available. Nonetheless, analyzing the activity ratios collectively provides insights into how efficiently Linde Plc. is managing its inventory, receivables, and payables, which are crucial aspects of its operational efficiency and liquidity management.

Average number of days

		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
Days of inventory on hand (DOH)	days	31.54	31.05	29.83	27.68	26.20	23.93	24.72	27.07	27.36	27.49	28.12	28.95	29.55	30.88	29.71	28.23	34.37	44.47	71.90	167.53
Days of sales outstanding (DSO)	days	52.81	53.07	53.18	52.20	49.98	49.98	53.99	55.99	53.68	54.00	55.27	54.96	56.33	54.49	53.28	52.88	55.56	57.02	71.18	85.52
Number of days of payables	days	45.03	41.09	42.72	39.64	39.68	39.56	46.50	51.92	55.31	49.80	52.24	50.30	52.90	51.73	48.78	49.56	66.15	82.61	141.35	318.17

Activity ratios, such as Days of Inventory on Hand (DOH), Days of Sales Outstanding (DSO), and Number of Days of Payables, provide insight into how efficiently a company is managing its operations and cash flows.

In the case of Linde Plc., we observe an increasing trend in DOH from Q1 2022 to Q4 2023, indicating that the company is holding inventory for a longer period. This could suggest potential issues with inventory management or slowing sales.

DSO, on the other hand, sees fluctuation but remains relatively stable over the periods analyzed, implying that Linde Plc. is maintaining consistent collections from customers.

In terms of payables, there is variability in the Number of Days of Payables, with a notable increase from Q2 2022 to Q4 2022. This could indicate the company is taking longer to pay its suppliers, potentially improving its cash flow position.

Overall, the analysis of Linde Plc.'s activity ratios suggests potential areas for improvement in inventory management efficiency, while showcasing effective management of receivables and payables to optimize cash flow.

Long-term

	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
Fixed asset turnover	1.33	1.37	1.38	1.40	1.41	1.49	1.35	1.23	1.18	1.13	1.07	1.02	0.94	0.97	0.99	1.03	0.98	0.95	0.78	0.64
Total asset turnover	0.40	0.41	0.42	0.41	0.42	0.45	0.42	0.38	0.37	0.35	0.34	0.32	0.31	0.31	0.32	0.33	0.33	0.32	0.26	0.20

The fixed asset turnover ratio for Linde Plc. has shown a declining trend over the past eight quarters, from 1.49 in Q3 2022 to 1.34 in Q4 2023. This indicates that the company is generating fewer sales in relation to its fixed assets over time. A lower fixed asset turnover ratio could suggest inefficiencies in asset utilization, potential over-investment in fixed assets, or declining sales.

On the other hand, the total asset turnover ratio has remained relatively stable around 0.42 over the same period. This ratio measures the company's ability to generate sales from its total assets. The stability in this ratio suggests that Linde Plc. is effectively utilizing its total assets to generate revenue. However, it is important to note that the total asset turnover ratio is lower than the fixed asset turnover ratio, indicating that a significant portion of the company's assets may not be efficiently utilized to generate sales.

Overall, the declining trend in the fixed asset turnover ratio combined with the stable total asset turnover ratio may raise concerns about the company's asset efficiency and the need to further analyze the factors affecting asset utilization and sales generation at Linde Plc.