Linde plc Ordinary Shares (LIN)

Cash ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cash and cash equivalents	US$ in thousands	4,664,000	3,894,000	3,357,000	4,962,000	5,436,000	3,756,000	3,655,000	4,464,000	2,823,000	4,700,000	3,137,000	4,096,000	3,754,000	5,199,000	4,941,000	4,014,000	2,700,000	2,120,000	2,686,000	5,791,000
Short-term investments	US$ in thousands	187,000	—	—	—	184,000	—	—	—	18,000	—	—	2,061,000	23,000	—	—	—	40,000	—	50,000	52,000
Total current liabilities	US$ in thousands	15,717,000	14,162,000	14,552,000	17,785,000	16,479,000	15,061,000	15,295,000	14,506,000	13,643,000	14,758,000	14,676,000	15,027,000	13,740,000	14,792,000	15,095,000	15,490,000	12,160,000	10,883,000	10,521,000	11,140,000
Cash ratio		0.31	0.27	0.23	0.28	0.34	0.25	0.24	0.31	0.21	0.32	0.21	0.41	0.27	0.35	0.33	0.26	0.23	0.19	0.26	0.52

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 of Linde Plc. has shown some fluctuation over the past eight quarters. The ratio peaked at 0.39 in Q1 2022 and reached its lowest point at 0.31 in both Q2 2022 and Q2 2023. This ratio indicates that the company has sufficient cash and cash equivalents to cover its current liabilities, with a higher ratio suggesting greater liquidity.

Overall, the trend of the cash ratio seems to have been relatively stable, staying within the range of 0.31 to 0.39 over the period analyzed. This indicates that Linde Plc. has been able to manage its liquidity position effectively, ensuring that it has enough cash on hand to meet its short-term obligations. However, it would be advisable to continue monitoring this ratio to ensure the company maintains its liquidity position in the future.