Linde plc Ordinary Shares (LIN)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 8,970,000 | 8,401,000 | 6,657,000 | 5,501,000 | 4,106,000 |
| Interest expense | US$ in thousands | 256,000 | 413,000 | 63,000 | 77,000 | 115,000 |
| Interest coverage | 35.04 | 20.34 | 105.67 | 71.44 | 35.70 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $8,970,000K ÷ $256,000K
= 35.04
The interest coverage ratio for Linde plc Ordinary Shares has shown variability over the years. In 2020, the company had an interest coverage of 35.70, indicating that it was generating more than enough operating income to cover its interest expenses. The ratio improved significantly in 2021 to 71.44, reflecting a stronger ability to meet interest obligations.
By the end of 2022, Linde plc's interest coverage further increased to 105.67, depicting a very comfortable position in terms of covering interest costs. However, there was a notable decline in 2023, with the interest coverage dropping to 20.34, which could imply potential challenges in meeting interest payments based on its operating income.
Subsequently, in 2024, the interest coverage ratio recovered to 35.04, showing some improvement from the previous year but still below the levels seen in 2022 and 2021. This fluctuation in interest coverage ratios highlights the importance of monitoring the company's ability to cover interest expenses consistently over time.
Peer comparison
Dec 31, 2024