Linde plc Ordinary Shares (LIN)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 6,199,000 | 4,147,000 | 3,826,000 | 2,501,000 | 2,285,000 |
| Total stockholders’ equity | US$ in thousands | 39,720,000 | 40,028,000 | 44,035,000 | 47,317,000 | 49,074,000 |
| ROE | 15.61% | 10.36% | 8.69% | 5.29% | 4.66% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $6,199,000K ÷ $39,720,000K
= 15.61%
The return on equity (ROE) for Linde Plc. has shown a positive trend over the past five years, indicating an improvement in the company's efficiency in generating profits from shareholders' equity.
The ROE has progressively increased from 4.66% in 2019 to 15.61% in 2023. This upward trajectory suggests that the company's management has been able to effectively utilize shareholders' funds to generate higher returns.
The significant improvement in ROE reflects positively on Linde Plc.'s profitability and operational efficiency. It indicates that the company has been successful in increasing its net income relative to the shareholders' equity invested in the business.
The consistent growth in ROE demonstrates Linde Plc.'s ability to generate value for its shareholders over the years, by effectively managing its assets and liabilities to drive profitability and enhance shareholder wealth.
Peer comparison
Dec 31, 2023