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.
Peer comparison
Dec 31, 2023