Linde plc Ordinary Shares (LIN)
Operating return on assets (Operating ROA)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 8,024,000 | 7,683,000 | 7,244,000 | 5,822,000 | 5,369,000 | 5,019,000 | 4,698,000 | 5,251,000 | 4,984,000 | 4,676,000 | 4,353,000 | 3,802,000 | 3,322,000 | 2,948,000 | 2,979,000 | 3,057,000 | 2,933,000 | 5,514,000 | 5,183,000 | 5,153,000 |
| Total assets | US$ in thousands | 80,811,000 | 77,827,000 | 78,718,000 | 80,308,000 | 79,658,000 | 74,323,000 | 77,885,000 | 82,767,000 | 81,605,000 | 84,191,000 | 84,345,000 | 84,993,000 | 88,229,000 | 87,209,000 | 85,856,000 | 84,369,000 | 86,612,000 | 84,394,000 | 87,189,000 | 91,641,000 |
| Operating ROA | 9.93% | 9.87% | 9.20% | 7.25% | 6.74% | 6.75% | 6.03% | 6.34% | 6.11% | 5.55% | 5.16% | 4.47% | 3.77% | 3.38% | 3.47% | 3.62% | 3.39% | 6.53% | 5.94% | 5.62% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $8,024,000K ÷ $80,811,000K
= 9.93%
Linde Plc.'s operating return on assets (operating ROA) has shown a generally positive trend over the past eight quarters, indicating an improvement in the company's efficiency in generating operating profits from its assets. The operating ROA has increased from 6.70% in Q1 2022 to 10.03% in Q4 2023, reflecting a steady upward trajectory.
The consistent rise in the operating ROA suggests that Linde Plc. has been able to effectively utilize its assets to generate higher operating income relative to the size of its asset base. This is a positive indicator of operational effectiveness and efficiency within the company.
The improving trend in operating ROA could be attributed to various factors such as cost management initiatives, operational efficiencies, revenue growth, and effective asset utilization strategies implemented by the company. It demonstrates management's ability to leverage the company's assets to generate higher returns for its shareholders.
Overall, the increasing trend in Linde Plc.'s operating ROA signifies a positive performance trend and indicates that the company is effectively managing its assets to enhance operating profitability and create value for its stakeholders.
Peer comparison
Dec 31, 2023