Linde plc Ordinary Shares (LIN)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 13,397,000 | 12,198,000 | 11,335,000 | 12,152,000 | 10,693,000 |
| Total assets | US$ in thousands | 80,811,000 | 79,658,000 | 81,605,000 | 88,229,000 | 86,612,000 |
| Debt-to-assets ratio | 0.17 | 0.15 | 0.14 | 0.14 | 0.12 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $13,397,000K ÷ $80,811,000K
= 0.17
The debt-to-assets ratio of Linde Plc. has shown a fluctuating trend over the past five years. The ratio has gradually increased from 0.16 in 2019 to 0.24 in 2023, indicating that the company has been utilizing more debt relative to its total assets.
A higher debt-to-assets ratio suggests that a larger portion of the company's assets is financed through debt rather than equity. While an increase in this ratio can sometimes signify higher financial risk due to increased leverage, it can also indicate strategic decisions to leverage debt for growth opportunities or investments.
Overall, it is important for stakeholders to closely monitor Linde Plc.'s debt levels and assess the company's ability to manage its debt obligations effectively in order to evaluate the potential impact on the company's financial stability and performance in the future.
Peer comparison
Dec 31, 2023