Linde plc Ordinary Shares (LIN)

Short-term

Turnover ratios

Based on the provided data, we will analyze the activity ratios of Linde plc Ordinary Shares, focusing on Inventory Turnover, Receivables Turnover, Payables Turnover, and Working Capital Turnover.

1. Inventory Turnover:
The Inventory Turnover ratio measures how many times a company has sold and replaced its inventory during a specific period. In the case of Linde plc, the Inventory Turnover ratio has been steadily increasing from 9.69 on March 31, 2020, to 9.79 on December 31, 2024. This indicates that the company is efficiently managing its inventory by selling goods more frequently relative to its average inventory level.

2. Receivables Turnover:
The Receivables Turnover ratio reflects how efficiently a company is collecting its accounts receivable. However, the data provided for Linde plc shows "—," implying that specific information regarding the Receivables Turnover ratio is not available. Without this data, it is challenging to assess the company's effectiveness in collecting receivables.

3. Payables Turnover:
The Payables Turnover ratio measures how quickly a company pays its suppliers for credit purchases. Similar to Receivables Turnover, the data for Linde plc indicates "—," suggesting that information on the Payables Turnover ratio is not provided. Consequently, it is difficult to evaluate how effectively the company manages its payables.

4. Working Capital Turnover:
The Working Capital Turnover ratio assesses how efficiently a company utilizes its working capital to generate sales revenue. The data for Linde plc shows "—," indicating the absence of information regarding this ratio. Without this data, it is impossible to analyze how effectively the company converts its working capital into sales.

In conclusion, while the Inventory Turnover ratio for Linde plc has shown consistent improvement over the period analyzed, more detailed information is needed to evaluate the company's performance in terms of Receivables Turnover, Payables Turnover, and Working Capital Turnover.

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Average number of days

Based on the provided data for Linde plc's activity ratios:

1. Days of Inventory on Hand (DOH):
- Linde's Days of Inventory on Hand have shown a decreasing trend over the years, starting at 37.66 days on March 31, 2020, and reaching 37.26 days on December 31, 2024. This indicates that the company has been managing its inventory more efficiently over time, holding inventory for a shorter duration.

2. Days of Sales Outstanding (DSO):
- Unfortunately, there is no data available for Days of Sales Outstanding for Linde plc. This ratio typically reflects how quickly a company collects its accounts receivable, and the absence of data might suggest that this particular metric was not disclosed or calculated for the company.

3. Number of Days of Payables:
- Similar to DSO, there is no data provided for the Number of Days of Payables for Linde plc. This ratio would typically indicate how long a company takes to pay its suppliers. Without this information, it's challenging to analyze Linde's payment behavior towards its creditors.

In conclusion, based on the available data, while Linde plc's efficiency in managing inventory seems to have improved over time as reflected by a decreasing trend in Days of Inventory on Hand, the lack of information on Days of Sales Outstanding and Number of Days of Payables limits a comprehensive analysis of the company's overall performance in terms of receivables management and payment practices.

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See also:

Linde plc Ordinary Shares Short-term (Operating) Activity Ratios (Quarterly Data)

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Long-term

Linde plc's Fixed Asset Turnover ratio measures how efficiently the company is utilizing its fixed assets to generate sales. The trend of this ratio has been increasing steadily from 1.02 in March 2020 to 1.39 in June 2023. This indicates improved efficiency in generating revenue from fixed assets over the years. However, the ratio slightly decreased in the subsequent periods to 1.37 in September 2023.

Total Asset Turnover ratio reflects how well the company is using all its assets to generate revenue. Linde plc's Total Asset Turnover ratio has been fluctuating but generally showing an increasing trend, starting at 0.33 in March 2020 and reaching 0.46 in June 2024. This indicates that the company has been more effective in utilizing its total assets to generate sales over time, with some variation in performance in the interim periods.

Overall, the trends in both Fixed Asset Turnover and Total Asset Turnover ratios suggest that Linde plc has been improving its efficiency in utilizing assets to generate revenue, with some fluctuations in performance along the way.

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See also:

Linde plc Ordinary Shares Long-term (Investment) Activity Ratios (Quarterly Data)