Linde plc Ordinary Shares (LIN)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 6,565,000 | 6,199,000 | 4,147,000 | 3,826,000 | 2,501,000 |
| Total stockholders’ equity | US$ in thousands | 38,092,000 | 39,720,000 | 40,028,000 | 44,035,000 | 47,317,000 |
| ROE | 17.23% | 15.61% | 10.36% | 8.69% | 5.29% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $6,565,000K ÷ $38,092,000K
= 17.23%
Based on the provided data, Linde plc's return on equity (ROE) has shown a positive trend over the years, indicating an improvement in the company's ability to generate profits from shareholders' equity. The ROE has increased from 5.29% in December 2020 to 17.23% in December 2024, reflecting a consistent growth in the company's profitability and efficiency in utilizing equity investments.
The steady growth in ROE signifies that Linde plc is effectively utilizing the equity provided by its shareholders to generate higher returns. This could be attributed to various factors such as efficient cost management, strategic investments, increased sales, or improved asset utilization.
The increasing trend in ROE is a positive signal for investors, as it indicates that the company is generating more profits relative to the equity invested in the business. It also suggests that management is effectively allocating resources and creating shareholder value.
Overall, the rising ROE of Linde plc portrays a favorable financial performance and indicates a strong position in terms of profitability and efficiency in utilizing shareholders' equity.
Peer comparison
Dec 31, 2024