Linde plc Ordinary Shares (LIN)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 80,147,000 | 80,811,000 | 79,658,000 | 81,605,000 | 88,229,000 |
| Total stockholders’ equity | US$ in thousands | 38,092,000 | 39,720,000 | 40,028,000 | 44,035,000 | 47,317,000 |
| Financial leverage ratio | 2.10 | 2.03 | 1.99 | 1.85 | 1.86 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $80,147,000K ÷ $38,092,000K
= 2.10
The financial leverage ratio of Linde plc Ordinary Shares over the past five years shows a generally increasing trend, from 1.86 in December 2020 to 2.10 in December 2024. This indicates that the company's reliance on debt to finance its operations and investments has been growing over this period. A higher financial leverage ratio suggests that a larger portion of the company's assets is funded by debt, which can amplify both returns and risks for investors. It is important for stakeholders to monitor this trend closely, as an increasing leverage ratio can signal potential challenges in meeting debt obligations and may impact the company's financial stability in the long run. Further analysis of the company's debt structure and debt management strategies would provide a more comprehensive understanding of its financial health.
Peer comparison
Dec 31, 2024