Linde plc Ordinary Shares (LIN)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 8,024,000 | 7,683,000 | 7,244,000 | 5,822,000 | 5,369,000 | 5,019,000 | 4,698,000 | 5,251,000 | 4,984,000 | 4,676,000 | 4,353,000 | 3,802,000 | 3,322,000 | 2,948,000 | 2,979,000 | 3,057,000 | 2,933,000 | 5,514,000 | 5,183,000 | 5,153,000 |
| Interest expense (ttm) | US$ in thousands | 200,000 | 160,000 | 138,000 | 91,000 | 63,000 | 63,000 | 53,000 | 66,000 | 77,000 | 81,000 | 111,000 | 111,000 | 115,000 | 88,000 | 53,000 | 45,000 | 44,000 | 108,000 | 145,000 | 176,000 |
| Interest coverage | 40.12 | 48.02 | 52.49 | 63.98 | 85.22 | 79.67 | 88.64 | 79.56 | 64.73 | 57.73 | 39.22 | 34.25 | 28.89 | 33.50 | 56.21 | 67.93 | 66.66 | 51.06 | 35.74 | 29.28 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $8,024,000K ÷ $200,000K
= 40.12
Interest coverage measures a company's ability to pay its interest expenses on outstanding debt using its operating income. Linde Plc.'s interest coverage ratio has shown a declining trend from Q1 2023 to Q4 2023. The interest coverage ratio was highest in Q1 2022 at 111.96, indicating that the company had ample operating income to cover its interest expenses over 100 times. However, as of Q4 2023, the interest coverage ratio has decreased to 38.30, suggesting a decrease in the company's ability to cover its interest expenses with its operating income.
The decreasing trend in the interest coverage ratio may signal potential concerns regarding the company's ability to service its debt obligations in the future. It is essential for investors and stakeholders to monitor this ratio closely as it provides insights into Linde Plc.'s financial health and debt repayment capacity.
Peer comparison
Dec 31, 2023
See also:
Linde plc Ordinary Shares Interest Coverage (Quarterly Data)