Financial statement analysis and common stock valuation

Analysis of Short-term (Operating) Activity Ratios

Evaluates revenues and output generated by the Linde plc assets. Operating performance ratios describe the relationship between the Linde plc level of operations and the assets needed to sustain operating activities.

• Short-term Activity Ratios (Summary)
• Inventory Turnover
• Receivables Turnover
• Payables Turnover
• Working Capital Turnover
• Average Inventory Processing Period
• Average Receivable Collection Period
• Operating Cycle
• Average Payables Payment Period
• Cash Conversion Cycle

Analysis of Revenues

• Revenues as Reported

Analysis of Solvency Ratios

Examines Linde plc capital structure in terms of the mix of its financing sources and the ability of the firm to satisfy its longer-term debt and investment obligations.

• Solvency Ratios (Summary)
• Debt to Equity
• Debt to Equity (including Operating Lease Liability)
• Debt to Capital
• Debt to Capital (including Operating Lease Liability)
• Debt to Assets
• Debt to Assets (including Operating Lease Liability)
• Financial Leverage
• Interest Coverage
• Fixed Charge Coverage

Common-Size Balance Sheet: Assets
Quarterly Data

Assets components shown as percentage of total assets.

Income Statement

The income statement (statement of earnings) reports on the performance of Linde plc, the result of its operating activities.

Dividend Discount Model (DDM)

The dividend discount model (DDM) is a technique for estimating the value of a share of Linde plc common stock issue as the present value of all future dividends.

• Intrinsic Stock Value (Valuation Summary)
• Required Rate of Return (r)
• Dividend Growth Rate (g)

Analysis of Geographic Areas

Linde plc operates in 8 regions: United States; China; Germany; United Kingdom; Australia; Mexico; Brazil; and Other, non-U.S..

• Area Asset Turnover
• Sales
• Long-lived assets

Common Stock Valuation Ratios

Relative valuation technique determine the value of Linde plc by comparing it to similar entities (like industry or sector) on the basis of several relative ratios that compare its stock price to relevant variables that affect the stock value, such as earnings, book value, and sales.

• Current Valuation Ratios
• Historical Valuation Ratios (Summary)
• Price to Earnings (P/E)
• Price to Operating Profit (P/OP)
• Price to Sales (P/S)
• Price to Book Value (P/BV)

Statement of Comprehensive Income

Comprehensive income is the change in equity (net assets) of Linde plc during a period from transactions and other events and circumstances from non-owners sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners.

Common-Size Balance Sheet: Assets

Assets components shown as percentage of total assets.

Common Stock Valuation Ratios
Quarterly Data

Relative valuation technique determine the value of Linde plc by comparing it to similar entities (like industry or sector) on the basis of several relative ratios that compare its stock price to relevant variables that affect the stock value, such as earnings, book value, and sales.

• Historical Valuation Ratios (Summary)
• Price to Earnings (P/E)
• Price to Operating Profit (P/OP)
• Price to Sales (P/S)
• Price to Book Value (P/BV)

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin

An approach to decomposing Linde plc return on equity, return on assets, and net profit margin ratio as the product of other financial ratios.

• Two-Component Disaggregation of ROE
• Three-Component Disaggregation of ROE
• Five-Component Disaggregation of ROE
• Two-Component Disaggregation of ROA
• Four-Component Disaggregation of ROA
• Disaggregation of Net Profit Margin