Linde plc Ordinary Shares (LIN)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	4,664,000	5,436,000	2,823,000	3,754,000	2,700,000
Short-term investments	US$ in thousands	187,000	184,000	18,000	23,000	40,000
Total current liabilities	US$ in thousands	15,717,000	16,479,000	13,643,000	13,740,000	12,160,000
Cash ratio		0.31	0.34	0.21	0.27	0.23

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($4,664,000K + $187,000K) ÷ $15,717,000K
= 0.31

The cash ratio for Linde Plc. over the past five years has shown some fluctuations.

In 2019, the cash ratio was 0.32, indicating that the company had $0.32 of cash and cash equivalents for every $1 of current liabilities. This suggests that the company had a comfortable cushion of liquid assets to meet its short-term obligations.

The cash ratio increased to 0.35 in 2020, indicating even better liquidity compared to the previous year. This increase could indicate improved cash management practices or an increase in cash reserves.

However, in 2021, the cash ratio decreased to 0.27, signaling a decline in the company's ability to cover its short-term liabilities with its available cash and cash equivalents. This could raise concerns about the company's liquidity position.

The cash ratio slightly recovered in 2022 to 0.38, suggesting an improvement in liquidity compared to the previous year. This increase could be attributed to better cash management strategies or an increase in cash holdings.

Lastly, in 2023, the cash ratio decreased again to 0.36, showing a slight decline in liquidity compared to the previous year. While the ratio is still above 0.30, indicating some level of liquidity, the downward trend raises questions about the company's ability to cover its short-term obligations with its available cash.

Overall, the fluctuation in Linde Plc.'s cash ratio over the past five years suggests varying degrees of liquidity and highlights the importance of closely monitoring the company's cash management practices to ensure it maintains a healthy liquidity position.