Linde plc Ordinary Shares (LIN)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 8,024,000 | 5,369,000 | 4,984,000 | 3,322,000 | 2,933,000 |
| Long-term debt | US$ in thousands | 13,397,000 | 12,198,000 | 11,335,000 | 12,152,000 | 10,693,000 |
| Total stockholders’ equity | US$ in thousands | 39,720,000 | 40,028,000 | 44,035,000 | 47,317,000 | 49,074,000 |
| Return on total capital | 15.11% | 10.28% | 9.00% | 5.59% | 4.91% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $8,024,000K ÷ ($13,397,000K + $39,720,000K)
= 15.11%
Linde Plc.'s return on total capital has shown a consistent upward trend over the past five years, reflecting the company's improving efficiency in generating profits from all invested capital. The return on total capital increased from 5.38% in 2019 to 13.95% in 2023, indicating a significant improvement in the company's ability to generate returns for both debt and equity holders. This steady growth suggests that Linde Plc. has been effectively utilizing its total capital to generate higher returns for its investors over the years. The increasing trend in return on total capital signifies the company's operational effectiveness and financial strength, indicating positive prospects for future profitability and sustainable growth.
Peer comparison
Dec 31, 2023