Linde plc Ordinary Shares (LIN)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 39,720,000 | 40,028,000 | 44,035,000 | 47,317,000 | 49,074,000 |
| Debt-to-capital ratio | 0.25 | 0.23 | 0.20 | 0.20 | 0.18 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $13,397,000K ÷ ($13,397,000K + $39,720,000K)
= 0.25
The debt-to-capital ratio of Linde Plc. has shown an increasing trend over the past five years. In 2019, the ratio was 0.22, indicating that debt made up 22% of the company's total capital. Subsequently, the ratio increased to 0.26 in 2020, 0.24 in 2021, 0.31 in 2022, and 0.33 in 2023.
This upward trend suggests that the company has been utilizing more debt relative to its total capital base over the years. A higher debt-to-capital ratio may indicate increased financial leverage and risk, as a larger portion of the company's capital structure is funded by debt rather than equity.
It is essential for investors and stakeholders to closely monitor Linde Plc.'s debt levels and financial health to assess its ability to meet debt obligations and manage associated risks effectively.
Peer comparison
Dec 31, 2023