Linde plc Ordinary Shares (LIN)

Debt-to-equity 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-equity ratio		0.34	0.30	0.26	0.26	0.22

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $13,397,000K ÷ $39,720,000K
= 0.34

The debt-to-equity ratio of Linde Plc. has shown an increasing trend over the past five years. The ratio has gradually increased from 0.28 in 2019 to 0.49 in 2023. This indicates that the company has been relying more on debt financing relative to equity financing over the period.

In 2021, there was a significant jump in the debt-to-equity ratio from 0.34 to 0.49, suggesting a notable increase in debt levels compared to equity. However, the ratio had been relatively stable in the preceding years.

Although an increasing debt-to-equity ratio may imply higher financial risk due to increased leverage, it can also indicate that the company is taking advantage of favorable debt terms or pursuing strategic growth opportunities. It is important for investors and analysts to further investigate the reasons behind the changing ratio to assess the company's overall financial health and risk profile.