Linde plc Ordinary Shares (LIN)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 8,970,000 | 8,401,000 | 6,657,000 | 5,501,000 | 4,106,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 38,092,000 | 39,720,000 | 40,028,000 | 44,035,000 | 47,317,000 |
| Return on total capital | 23.55% | 21.15% | 16.63% | 12.49% | 8.68% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $8,970,000K ÷ ($—K + $38,092,000K)
= 23.55%
Linde plc Ordinary Shares has shown a positive trend in its return on total capital over the past five years. The return on total capital has increased steadily from 8.68% as of December 31, 2020, to 23.55% as of December 31, 2024. This demonstrates an improvement in the company's ability to generate profits from the total capital employed in its operations.
The consistent growth in return on total capital indicates that Linde plc has been effectively utilizing its financial resources to generate higher returns for its investors. This increase reflects positively on the company's operational efficiency and profitability. Investors and stakeholders may view this trend as a sign of sound financial health and effective management of the company's assets.
Overall, the upward trajectory of Linde plc's return on total capital suggests a positive outlook for the company's financial performance and strategic decision-making in utilizing its capital resources to drive growth and value creation.
Peer comparison
Dec 31, 2024