Linde plc Ordinary Shares (LIN)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 48.06% | 46.76% | 41.70% | 43.03% | 43.53% |
| Operating profit margin | 26.16% | 24.42% | 16.09% | 16.19% | 12.19% |
| Pretax margin | 26.48% | 24.31% | 16.61% | 16.56% | 12.42% |
| Net profit margin | 19.89% | 18.87% | 12.43% | 12.42% | 9.18% |
Linde plc's profitability ratios reflect a generally positive trend over the past five years.
- The gross profit margin has seen fluctuations, starting at 43.53% in December 31, 2020, dropping to 41.70% in December 31, 2022, but then improving significantly to 48.06% by December 31, 2024. This suggests that the company has been able to effectively manage its direct costs of goods sold.
- The operating profit margin has shown steady improvement, increasing from 12.19% in December 31, 2020, to 26.16% by December 31, 2024. This indicates that Linde plc has been able to control its operating expenses and generate more profit from its core business operations.
- The pretax margin has also demonstrated a consistent upward trajectory, rising from 12.42% in December 31, 2020, to 26.48% by December 31, 2024. This suggests that the company has been efficient in managing its taxes and other non-operating expenses.
- The net profit margin has shown significant growth over the years, increasing from 9.18% in December 31, 2020, to 19.89% by December 31, 2024. This indicates that Linde plc has been successful in not only managing its costs but also in generating higher profits relative to its revenue.
Overall, the company's profitability ratios demonstrate an improving trend, showcasing effective cost management and operational efficiency leading to higher profits over the years.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 10.77% | 9.93% | 6.74% | 6.11% | 3.77% |
| Return on assets (ROA) | 8.19% | 7.67% | 5.21% | 4.69% | 2.83% |
| Return on total capital | 23.55% | 21.15% | 16.63% | 12.49% | 8.68% |
| Return on equity (ROE) | 17.23% | 15.61% | 10.36% | 8.69% | 5.29% |
Linde plc's profitability ratios have shown a positive trend over the 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 increased steadily from 3.77% in 2020 to 10.77% in 2024, reflecting a consistent improvement in the company's operational efficiency and profitability.
- Return on assets (ROA) has also shown a similar upward trajectory, rising from 2.83% in 2020 to 8.19% in 2024, indicating that Linde plc has been more effective in generating profits from its total assets.
- Return on total capital has displayed significant growth over the years, increasing from 8.68% in 2020 to 23.55% in 2024, highlighting the company's ability to generate returns for both debt and equity holders.
- Return on equity (ROE) has followed a similar positive trend, climbing from 5.29% in 2020 to 17.23% in 2024, demonstrating the company's capacity to generate returns for its shareholders.
Overall, Linde plc's profitability ratios depict a strong financial performance and efficient utilization of assets and capital, indicating a favorable outlook for the company's profitability in the coming years.