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.