Linde plc Ordinary Shares (LIN)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 41.43 | 44.13 | 37.12 | 36.06 | 41.02 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 41.43 | 44.13 | 37.12 | 36.06 | 41.02 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 41.43 + — – —
= 41.43
The cash conversion cycle of Linde plc Ordinary Shares has shown some fluctuations over the past five years.
As of December 31, 2020, the company's cash conversion cycle stood at 41.02 days. This metric decreased to 36.06 days by December 31, 2021, indicating an improvement in the efficiency of converting its investments in inventory and receivables into cash.
However, by December 31, 2022, the cash conversion cycle increased slightly to 37.12 days before experiencing a more significant rise to 44.13 days by December 31, 2023. This suggests that the company took longer to convert its working capital into cash during this period.
By December 31, 2024, the cash conversion cycle decreased to 41.43 days, although it remained higher compared to the levels seen in 2021 and 2022.
Overall, Linde plc's cash conversion cycle has exhibited fluctuations, with a mix of improvements and slight deteriorations over the five-year period. Monitoring this metric can provide insights into the company's efficiency in managing its working capital and cash flow operations.
Peer comparison
Dec 31, 2024