Linde plc, balance sheet: debt

US$ in millions

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Short-term debt	4,713)	4,117)	1,163)	3,251)	1,732)
Current portion of long-term debt	1,263)	1,599)	1,709)	751)	1,531)
Current finance lease liabilities	50)	42)	47)	38)	—)
Long-term debt, excluding current portion	13,397)	12,198)	11,335)	12,152)	10,693)
Long-term finance lease liabilities	143)	114)	129)	125)	—)
Total debt and finance lease liabilities (carrying amount)	19,566)	18,070)	14,383)	16,317)	13,956)

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Debt item	Description	The company
Total debt and finance lease liabilities (carrying amount)	Sum of the carrying values as of the balance sheet date of all debt plus capital lease obligations.	Linde plc total debt increased from 2021 to 2022 and from 2022 to 2023.

	Dec 31, 2023
Selected Financial Data (US$ in millions)
Short-term debt	4,713)
Long-term debt, including current portion	13,337)
Finance lease liabilities	193)
Total debt and finance lease liabilities (fair value)	18,243)
Financial Ratio
Debt, fair value to carrying amount ratio	0.93

Weighted-average interest rate on debt and finance lease liabilities: 2.67%

Interest rate	Debt amount¹	Interest rate × Debt amount
4.80%	4,713)	226)
1.20%	607)	7)
1.88%	332)	6)
4.80%	300)	14)
4.70%	599)	28)
2.65%	399)	11)
1.63%	550)	9)
3.63%	551)	20)
0.00%	774)	—)
3.20%	724)	23)
3.43%	198)	7)
1.65%	90)	1)
0.25%	827)	2)
1.00%	553)	6)
1.00%	780)	8)
3.38%	824)	28)
1.10%	697)	8)
1.90%	114)	2)
1.38%	829)	11)
0.55%	823)	5)
0.38%	546)	2)
3.63%	714)	26)
1.63%	876)	14)
3.55%	666)	24)
2.00%	296)	6)
1.00%	755)	8)
7.84%	193)	15)
Total	19,330)	517)
2.67%

¹ US$ in millions

² Weighted-average interest rate = 100 × 517 ÷ 19,330 = 2.67%

Linde plc, interest costs incurred

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Interest expense	397)	180)	117)	170)	150)
Interest capitalized	67)	62)	57)	38)	38)
Interest incurred on debt	464)	242)	174)	208)	188)

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Debt item	Description	The company
Interest expense	Amount of the cost of borrowed funds accounted for as interest expense for debt.	Linde plc interest expense increased from 2021 to 2022 and from 2022 to 2023.
Interest capitalized	Amount of interest costs capitalized disclosed as an adjusting item to interest costs incurred.	Linde plc interest capitalized increased from 2021 to 2022 and from 2022 to 2023.
Interest incurred on debt	Total interest costs incurred during the period and either capitalized or charged against earnings.	Linde plc interest incurred on debt increased from 2021 to 2022 and from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Selected Financial Data (US$ in millions)
Net income, Linde plc	6,199)	4,147)	3,826)	2,501)	2,285)
Add: Net income attributable to noncontrolling interest	142)	134)	135)	125)	96)
Less: Income from discontinued operations, net of tax	—)	—)	5)	4)	109)
Add: Income tax expense	1,814)	1,434)	1,262)	847)	769)
Add: Interest expense	397)	180)	117)	170)	150)
Earnings before interest and tax (EBIT)	8,552)	5,895)	5,335)	3,639)	3,191)

Interest incurred on debt	464)	242)	174)	208)	188)
Financial Ratio With and Without Capitalized Interest
Interest coverage ratio (without capitalized interest)¹	21.54	32.75	45.60	21.41	21.27
Adjusted interest coverage ratio (with capitalized interest)²	18.43	24.36	30.66	17.50	16.97

2023 Calculations

¹ Interest coverage ratio (without capitalized interest) = EBIT ÷ Interest expense
= 8,552 ÷ 397 = 21.54

² Adjusted interest coverage ratio (with capitalized interest) = EBIT ÷ Interest incurred on debt
= 8,552 ÷ 464 = 18.43

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Solvency ratio	Description	The company
Adjusted interest coverage ratio	A solvency ratio calculated as EBIT divided by interest payments (including capitalized interest).	Linde plc adjusted interest coverage ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Linde plc (NASDAQ:LIN)

Analysis of Debt