Linde plc Ordinary Shares (LIN)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.10 | 2.11 | 2.10 | 2.07 | 2.03 | 2.00 | 1.97 | 2.01 | 1.99 | 1.98 | 1.96 | 1.93 | 1.85 | 1.90 | 1.84 | 1.84 | 1.86 | 1.89 | 1.89 | 1.88 |
The solvency ratios of Linde plc Ordinary Shares indicate the company's ability to meet its long-term obligations.
1. Debt-to-assets ratio: Linde plc has consistently maintained a debt-to-assets ratio of 0.00, indicating that the company's total debt is effectively negligible in relation to its total assets. This signifies a strong financial position and minimal risk of insolvency related to debt obligations.
2. Debt-to-capital ratio: Similar to the debt-to-assets ratio, the debt-to-capital ratio has also been consistently reported at 0.00 over the analyzed periods. This indicates a conservative capital structure with a minimal reliance on debt financing, further reinforcing the company's financial stability.
3. Debt-to-equity ratio: Linde plc's debt-to-equity ratio has remained at 0.00 throughout the periods assessed. This suggests that the company has no debt in relation to its equity, highlighting a robust equity base and a reduced risk of financial distress associated with high debt levels.
4. Financial leverage ratio: The financial leverage ratio has shown a gradually increasing trend from 1.88 in March 2020 to 2.10 in December 2024. This indicates that the company's reliance on debt to finance its operations has been increasing over time, potentially leading to higher financial risk. However, the leverage ratios are still within manageable levels, suggesting that the company's debt burden is sustainable.
Overall, based on the solvency ratios analyzed, Linde plc appears to be in a strong financial position with minimal leverage and a conservative debt structure, which bodes well for its long-term financial health and ability to meet its financial obligations.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 17.89 | 31.05 | 34.70 | 36.68 | 41.28 | 49.68 | 87.96 | 164.65 | 295.79 | 290.95 | 252.98 | 149.98 | 71.49 | 64.36 | 44.21 | 39.71 | 35.69 | 43.27 | 69.51 | 80.47 |
The interest coverage ratio for Linde plc Ordinary Shares has shown significant fluctuations over the specified period. The ratio was relatively high, at 80.47, as of March 31, 2020, indicating that the company was comfortably able to cover its interest expenses. However, it gradually decreased to 17.89 as of December 31, 2024.
The substantial reduction in the interest coverage ratio from 2020 to 2024 suggests that the company's ability to cover its interest payments decreased over time. A declining trend in this ratio may indicate increasing financial risk as the company may be struggling to generate sufficient operating income to meet its interest obligations.
It is essential to note that a declining interest coverage ratio could potentially raise concerns among investors and creditors regarding the company's financial stability and ability to service its debt. Further analysis of the company's financial health, profitability, and debt levels would be necessary to fully assess the implications of these fluctuations in the interest coverage ratio.