Linde plc Ordinary Shares (LIN)

Debt-to-capital ratio

		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
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
Debt-to-capital ratio		0.25	0.25	0.25	0.23	0.23	0.00	0.00	0.00	0.20	0.00	0.00	0.00	0.20	0.00	0.00	0.00	0.18	0.00	0.00	0.00

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 been relatively stable over the last eight quarters, ranging between 0.28 and 0.33. This ratio measures the proportion of the company's capital structure that is financed by debt, with the remainder funded by equity.

The decreasing trend from Q1 2022 to Q2 2023 indicates a slight decrease in the reliance on debt financing relative to total capital. This can be seen as a positive sign, as a lower debt-to-capital ratio implies a lower financial risk and greater financial stability.

Overall, the company has been managing its debt levels effectively, maintaining a healthy balance between debt and equity financing. However, it would be essential to monitor future trends in the debt-to-capital ratio to ensure that the company's financial structure remains optimal and sustainable in the long run.