Linde plc Ordinary Shares (LIN)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 8,712,000 | 8,507,000 | 8,536,000 | 8,362,000 | 8,256,000 | 7,948,000 | 12,139,000 | 14,983,000 | 18,635,000 | 18,330,000 | 13,408,000 | 9,899,000 | 5,505,000 | 5,213,000 | 4,907,000 | 4,408,000 | 4,104,000 | 3,808,000 | 3,684,000 | 3,621,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 38,092,000 | 39,173,000 | 38,179,000 | 38,829,000 | 39,720,000 | 38,898,000 | 39,911,000 | 39,970,000 | 40,028,000 | 37,628,000 | 39,674,000 | 42,963,000 | 44,035,000 | 44,323,000 | 45,777,000 | 46,210,000 | 47,317,000 | 46,175,000 | 45,537,000 | 44,776,000 |
| Return on total capital | 22.87% | 21.72% | 22.36% | 21.54% | 20.79% | 20.43% | 30.42% | 37.49% | 46.55% | 48.71% | 33.80% | 23.04% | 12.50% | 11.76% | 10.72% | 9.54% | 8.67% | 8.25% | 8.09% | 8.09% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $8,712,000K ÷ ($—K + $38,092,000K)
= 22.87%
Linde plc Ordinary Shares has shown a fluctuating trend in its return on total capital over the past few years. Starting at 8.09% in March 2020, the return on total capital remained relatively stable until it began to steadily increase from March 2021 onwards.
The return on total capital increased significantly from 9.54% in March 2021 to a peak of 48.71% in September 2022, reflecting a period of strong performance and efficient capital utilization. However, there was a notable decrease in the return on total capital in the subsequent quarters, dropping to 20.43% by September 2023.
Despite the fluctuations, the return on total capital remained above 20%, indicating that Linde plc continues to generate value from its capital investments. The consistency in maintaining a return on total capital above 20% demonstrates the company's ability to effectively allocate capital to generate profits for its shareholders.
Peer comparison
Dec 31, 2024