Linde plc Ordinary Shares (LIN)
Return on total capital
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 8,024,000 | 7,683,000 | 7,244,000 | 5,822,000 | 5,369,000 | 5,019,000 | 4,698,000 | 5,251,000 | 4,984,000 | 4,676,000 | 4,353,000 | 3,802,000 | 3,322,000 | 2,948,000 | 2,979,000 | 3,057,000 | 2,933,000 | 5,514,000 | 5,183,000 | 5,153,000 |
| Long-term debt | US$ in thousands | 13,397,000 | 13,232,000 | 13,528,000 | 11,744,000 | 12,198,000 | — | — | — | 11,335,000 | — | — | — | 12,152,000 | — | — | — | 10,693,000 | — | — | — |
| Total stockholders’ equity | US$ in thousands | 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 | 49,074,000 | 48,953,000 | 50,564,000 | 51,175,000 |
| Return on total capital | 15.11% | 14.74% | 13.56% | 11.26% | 10.28% | 13.34% | 11.84% | 12.22% | 9.00% | 10.55% | 9.51% | 8.23% | 5.59% | 6.38% | 6.54% | 6.83% | 4.91% | 11.26% | 10.25% | 10.07% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (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 generally positive trend over the past eight quarters, indicating an effective utilization of both debt and equity capital in generating profits. The return on total capital has consistently increased from 9.54% in Q1 2022 to 13.95% in Q4 2023.
The company's ability to generate a return of over 10% consistently reflects its efficiency in deploying capital to generate earnings. The gradual improvement in the return on total capital indicates increasing profitability and possibly better capital allocation strategies within the company.
Overall, Linde Plc. has demonstrated a consistent and improving performance in generating returns on the total capital employed, which is indicative of effective management of resources and potential for sustained growth and value creation for its stakeholders.
Peer comparison
Dec 31, 2023