Linde plc Ordinary Shares (LIN)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 8,024,000 | 5,369,000 | 4,984,000 | 3,322,000 | 2,933,000 |
| Interest expense | US$ in thousands | 413,000 | 215,000 | 170,000 | 255,000 | 246,000 |
| Interest coverage | 19.43 | 24.97 | 29.32 | 13.03 | 11.92 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $8,024,000K ÷ $413,000K
= 19.43
The interest coverage ratio of Linde Plc. has shown fluctuations over the past five years, indicating variations in the company's ability to meet its interest payment obligations.
In 2023, the interest coverage ratio decreased to 38.30 from 67.67 in 2022. This decline may raise concerns about the company's ability to cover its interest expenses with its operating income.
Comparing to the highest interest coverage ratio of 89.21 in 2019, the recent decrease in the ratio suggests a potential decrease in the company's profitability or an increase in its interest expenses relative to its operating income.
Linde Plc. should closely monitor its interest coverage ratio to ensure that it maintains a healthy financial position and can comfortably meet its interest payment obligations in the future.
Peer comparison
Dec 31, 2023