Linde plc Ordinary Shares (LIN)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 8,024,000 | 5,369,000 | 4,984,000 | 3,322,000 | 2,933,000 |
| Total assets | US$ in thousands | 80,811,000 | 79,658,000 | 81,605,000 | 88,229,000 | 86,612,000 |
| Operating ROA | 9.93% | 6.74% | 6.11% | 3.77% | 3.39% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $8,024,000K ÷ $80,811,000K
= 9.93%
Operating return on assets (operating ROA) is a key financial ratio that measures a company's ability to generate operating income relative to its total assets. It indicates how efficiently a company is utilizing its assets to generate profits from its core operations.
Analyzing the operating ROA trend of Linde Plc. over the past five years, we observe a consistent improvement in the ratio. From 2019 to 2023, the operating ROA has increased steadily from 3.77% to 10.03%. This indicates that Linde Plc. has been effectively managing its operating assets to generate higher operating income over the years.
The rising trend in operating ROA suggests that Linde Plc. is becoming more efficient in utilizing its assets to generate operating profits. This could be attributed to various factors such as improved operational performance, better cost management, or increased revenue generation from core business activities.
Overall, the increasing trend in operating ROA reflects positively on Linde Plc.'s operational efficiency and financial performance, indicating that the company is effectively leveraging its assets to generate operating income for its stakeholders.
Peer comparison
Dec 31, 2023