Linde plc Ordinary Shares (LIN)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 0.89 | 0.96 | 0.95 | 0.91 | 0.80 | 0.83 | 0.78 | 0.73 | 0.79 | 0.74 | 0.74 | 0.84 | 0.74 | 0.81 | 0.71 | 0.74 | 0.80 | 0.83 | 0.80 | 0.74 |
| Quick ratio | 0.33 | 0.37 | 0.34 | 0.34 | 0.30 | 0.27 | 0.23 | 0.28 | 0.33 | 0.25 | 0.24 | 0.31 | 0.21 | 0.32 | 0.21 | 0.41 | 0.42 | 0.35 | 0.33 | 0.26 |
| Cash ratio | 0.33 | 0.37 | 0.34 | 0.34 | 0.30 | 0.27 | 0.23 | 0.28 | 0.33 | 0.25 | 0.24 | 0.31 | 0.21 | 0.32 | 0.21 | 0.41 | 0.42 | 0.35 | 0.33 | 0.26 |
The current ratio of Linde plc Ordinary Shares has shown some fluctuations over the years, ranging from a low of 0.71 in June 2021 to a high of 0.96 in September 2024. This indicates that in recent years, the company's current assets have at times been insufficient to cover its current liabilities but have improved overall.
The quick ratio, which provides a stricter measure of liquidity by excluding inventory from current assets, has also varied. It ranged from a low of 0.21 in both June and December 2021 to a high of 0.37 in September 2024. This ratio suggests a more conservative view of the company's ability to meet short-term obligations.
The cash ratio, which is the most stringent liquidity ratio as it only considers cash and cash equivalents, has followed a similar pattern to the quick ratio. It was lowest at 0.21 in June 2021 and reached its highest point at 0.37 in September 2024.
Overall, while the current ratio has shown some improvement over the years, the quick and cash ratios suggest that Linde plc Ordinary Shares may still need to enhance its liquidity position, particularly during periods of lower current assets. Further monitoring of these ratios will be essential to ensure the company's ability to meet its short-term financial obligations effectively.
See also:
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The cash conversion cycle of Linde plc Ordinary Shares has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The cash conversion cycle represents the time it takes for a company to convert its investment in inventory and other resources into cash flows from sales.
The trend indicates that the company reduced its cash conversion cycle from 37.66 days on March 31, 2020, to 37.26 days on December 31, 2024. This improvement suggests that Linde plc has become more efficient at managing its working capital over the years.
However, it is important to note that there have been fluctuations in the cash conversion cycle during this period, reaching a peak of 44.37 days on March 31, 2024. These fluctuations may be attributed to changes in the company's inventory management, accounts receivable collection, or accounts payable terms.
Overall, the decreasing trend in the cash conversion cycle is a positive indication for Linde plc Ordinary Shares as it signifies improved efficiency in converting its resources into cash. However, management should continue to monitor and optimize the cycle to maintain healthy working capital levels and liquidity.