Linde plc Ordinary Shares (LIN)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.10 | 2.03 | 1.99 | 1.85 | 1.86 |
Based on the solvency ratios provided for Linde plc Ordinary Shares, it is evident that the company maintains a very strong solvency position across the years examined. The debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio are all at 0.00 for each year from 2020 to 2024. This indicates that the company has no debt relative to its total assets, capital, or equity during these periods.
Furthermore, the financial leverage ratio, which measures the extent to which a company relies on debt financing, shows a consistent increase from 1.86 in 2020 to 2.10 in 2024. While this increase suggests a rise in the company's debt relative to equity, the ratio is still comparatively low, indicating a conservative approach to leverage.
Overall, the solvency ratios demonstrate that Linde plc Ordinary Shares has a very conservative financial structure with minimal debt levels and a strong ability to meet its financial obligations. This should provide investors and stakeholders with confidence in the company's financial stability and ability to weather economic challenges.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 35.04 | 20.34 | 105.67 | 71.44 | 35.70 |
The interest coverage ratio for Linde plc Ordinary Shares has shown fluctuation over the past five years. In 2020, the interest coverage stood at 35.70, indicating that the company's operating income was able to cover its interest expense by approximately 35 times.
Subsequently, there was a notable improvement in 2021 with the interest coverage ratio increasing to 71.44, demonstrating a stronger ability to meet interest obligations.
By the end of 2022, Linde plc's interest coverage ratio further improved to 105.67, indicating a significant enhancement in its capacity to cover interest payments from operating income.
However, in 2023, there was a decrease in the interest coverage ratio to 20.34, suggesting a decline in the company's ability to cover interest expenses with its operating income.
In 2024, there was a slight recovery with the interest coverage ratio at 35.04, although it remained below the levels seen in 2022. Overall, the trend in Linde plc's interest coverage ratio reflects fluctuations in its ability to handle interest payments over the years, with notable improvements followed by a temporary setback in 2023.