Linde plc Ordinary Shares (LIN)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | 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 |
| Receivables | US$ in thousands | 4,718,000 | 4,559,000 | 4,499,000 | 4,167,000 | 4,322,000 |
| Total current liabilities | US$ in thousands | 15,717,000 | 16,479,000 | 13,643,000 | 13,740,000 | 12,160,000 |
| Quick ratio | 0.61 | 0.62 | 0.54 | 0.58 | 0.58 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($4,664,000K
+ $187,000K
+ $4,718,000K)
÷ $15,717,000K
= 0.61
The quick ratio of Linde Plc. has exhibited some variability over the past five years, ranging from 0.62 to 0.70. The quick ratio measures the company's ability to utilize its most liquid assets to cover its short-term liabilities. With a quick ratio of 0.67 in 2023, Linde Plc. indicates that for every $1 of current liabilities, it has $0.67 of quick assets readily available to meet those obligations.
From 2019 to 2023, the quick ratio has shown relative stability, hovering around 0.67 with minor fluctuations. This consistency suggests that Linde Plc. has been able to manage its short-term liquidity effectively. However, it is noteworthy that the ratio dipped to 0.62 in 2021 before rebounding to previous levels.
Overall, while the quick ratio of Linde Plc. is below the ideal threshold of 1.0, indicating potential liquidity challenges in meeting short-term obligations, the consistent performance over the past few years suggests a maintained ability to cover immediate liabilities with its quick assets.
Peer comparison
Dec 31, 2023