Linde plc Ordinary Shares (LIN)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 37.26 | 39.73 | 42.06 | 44.37 | 44.13 | 43.37 | 41.11 | 39.29 | 37.12 | 33.94 | 34.25 | 35.25 | 36.06 | 37.02 | 38.20 | 39.67 | 41.02 | 40.85 | 39.85 | 37.66 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 37.26 | 39.73 | 42.06 | 44.37 | 44.13 | 43.37 | 41.11 | 39.29 | 37.12 | 33.94 | 34.25 | 35.25 | 36.06 | 37.02 | 38.20 | 39.67 | 41.02 | 40.85 | 39.85 | 37.66 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 37.26 + — – —
= 37.26
The cash conversion cycle for Linde plc Ordinary Shares has exhibited a gradual decrease over the years, indicating an improvement in the company's efficiency in managing its working capital. From March 31, 2020, where the cycle stood at 37.66 days, it decreased to 34.25 days by June 30, 2022, before slightly increasing to 37.26 days by December 31, 2024.
A lower cash conversion cycle suggests that the company is taking less time to convert its investments in raw materials into sales and subsequently into cash receipts. This could signify that Linde plc is effectively managing its inventory levels, collecting receivables promptly, and paying its suppliers efficiently.
Overall, the trend in the cash conversion cycle for Linde plc Ordinary Shares demonstrates a positive trajectory towards a more streamlined and effective working capital management process, which can enhance the company's liquidity and financial performance.
Peer comparison
Dec 31, 2024
See also:
Linde plc Ordinary Shares Cash Conversion Cycle (Quarterly Data)