Linde plc Ordinary Shares (LIN)
Receivables 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 |
| Receivables | US$ in thousands | 4,718,000 | 4,559,000 | 4,499,000 | 4,167,000 | 4,322,000 |
| Receivables turnover | 6.91 | 7.30 | 6.80 | 6.47 | 6.51 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $32,607,000K ÷ $4,718,000K
= 6.91
The receivables turnover for Linde Plc. has exhibited a generally stable trend over the past five years. The ratio has ranged from 6.14 in 2019 to 6.97 in 2022, with a slight dip to 6.15 in 2020 before increasing again. In 2023, the receivables turnover stood at 6.71, showing an improvement from the prior year.
This consistent performance indicates that Linde Plc. is efficient in collecting payments from customers relative to its level of sales. A higher receivables turnover suggests a shorter time it takes for the company to collect outstanding receivables, which is typically a positive indicator of liquidity and operational efficiency.
Overall, based on the receivables turnover data, Linde Plc. has been effectively managing its accounts receivable and converting them into cash through efficient collection practices. It is essential for the company to sustain this performance to ensure a healthy cash flow and working capital management.
Peer comparison
Dec 31, 2023