Linde plc Ordinary Shares (LIN)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 24.93% | 17.22% | 16.82% | 12.29% | 9.10% |
| Operating profit margin | 24.61% | 16.13% | 16.29% | 12.32% | 10.42% |
| Pretax margin | 24.57% | 16.77% | 16.63% | 12.42% | 10.85% |
| Net profit margin | 19.01% | 12.46% | 12.51% | 9.28% | 8.12% |
Linde Plc.'s profitability ratios have shown a positive trend over the past five years. The gross profit margin has steadily improved from 41.04% in 2019 to 46.76% in 2023, indicating the company's ability to effectively manage its production costs and generate profits from its core operations.
The operating profit margin has also exhibited a consistent growth trend, increasing from 11.58% in 2019 to 24.67% in 2023. This reflects Linde Plc.'s efficient management of operating expenses and improved operational efficiency.
Furthermore, the pretax margin has shown significant improvement, rising from 10.77% in 2019 to 24.82% in 2023. This indicates that the company has been successful in controlling its pre-tax expenses and optimizing its tax liabilities.
Moreover, the net profit margin, a key indicator of profitability, has shown a notable improvement over the five-year period, increasing from 8.09% in 2019 to 18.87% in 2023. This suggests that Linde Plc. has been successful in managing its overall expenses, including interest and tax costs, while generating healthy profits for shareholders.
Overall, Linde Plc.'s profitability ratios demonstrate a strong performance and financial health, with consistent improvements in profitability margins over the past five years.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 9.93% | 6.74% | 6.11% | 3.77% | 3.39% |
| Return on assets (ROA) | 7.67% | 5.21% | 4.69% | 2.83% | 2.64% |
| Return on total capital | 15.11% | 10.28% | 9.00% | 5.59% | 4.91% |
| Return on equity (ROE) | 15.61% | 10.36% | 8.69% | 5.29% | 4.66% |
Linde Plc.'s profitability ratios have shown a positive trend over the past five years, indicating an improvement in the company's ability to generate profits relative to its assets and capital.
Operating return on assets (Operating ROA) has consistently increased from 3.77% in 2019 to 10.03% in 2023. This ratio measures the profitability of the company's core operations in relation to its total assets, indicating that Linde has been able to generate more operating income per dollar of assets over the years.
Return on assets (ROA) has also shown steady growth, from 2.64% in 2019 to 7.67% in 2023. ROA reflects the overall profitability of the company in generating earnings from its assets, and the increasing trend in this ratio suggests that Linde has been more efficient in utilizing its assets to generate profits.
Return on total capital has shown a consistent upward trend, increasing from 5.38% in 2019 to 13.95% in 2023. This ratio indicates the company's ability to generate returns for both equity and debt holders, reflecting Linde's effective capital management and improved profitability over the years.
Return on equity (ROE) has also exhibited solid growth, rising from 4.66% in 2019 to 15.61% in 2023. ROE measures the return that shareholders receive on their equity investment, and the increasing trend signifies that Linde has been successful in generating higher profits for its shareholders.
Overall, the improving profitability ratios of Linde Plc. reflect the company's ability to enhance operational efficiency, effectively utilize its assets and capital, and generate attractive returns for its shareholders.