Stock Analysis on Net

Linde plc (NASDAQ:LIN)

Analysis of Debt

Microsoft Excel

Total Debt (Carrying Amount)

Linde plc, balance sheet: debt

US$ in millions

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Short-term debt 4,223 4,713 4,117 1,163 3,251
Current portion of long-term debt 2,057 1,263 1,599 1,709 751
Current finance lease liabilities 54 50 42 47 38
Long-term debt, excluding current portion 15,343 13,397 12,198 11,335 12,152
Long-term finance lease liabilities 150 143 114 129 125
Total debt and finance lease liabilities (carrying amount) 21,827 19,566 18,070 14,383 16,317

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

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 2022 to 2023 and from 2023 to 2024.

Total Debt (Fair Value)

Microsoft Excel
Dec 31, 2024
Selected Financial Data (US$ in millions)
Short-term debt 4,223
Long-term debt, including current portion 16,234
Finance lease liabilities 204
Total debt and finance lease liabilities (fair value) 20,661
Financial Ratio
Debt, fair value to carrying amount ratio 0.95

Based on: 10-K (reporting date: 2024-12-31).


Weighted-average Interest Rate on Debt

Weighted-average interest rate on debt and finance lease liabilities: 2.62%

Interest rate Debt amount1 Interest rate × Debt amount Weighted-average interest rate2
3.80% 4,223 160
4.70% 599 28
2.65% 400 11
1.63% 517 8
3.63% 517 19
0.00% 726
3.20% 725 23
3.43% 199 7
1.65% 84 1
0.25% 776 2
1.00% 519 5
1.00% 742 7
3.00% 722 22
3.38% 773 26
1.10% 697 8
1.90% 106 2
3.38% 772 26
1.38% 779 11
3.20% 878 28
0.55% 772 4
0.38% 512 2
3.63% 670 24
3.50% 769 27
1.63% 822 13
3.40% 718 24
3.55% 666 24
3.75% 712 27
2.00% 297 6
1.00% 707 7
6.44% 204 13
Total 21,603 566
2.62%

Based on: 10-K (reporting date: 2024-12-31).

1 US$ in millions

2 Weighted-average interest rate = 100 × 566 ÷ 21,603 = 2.62%


Interest Costs Incurred

Linde plc, interest costs incurred

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Interest expense 484 397 180 117 170
Interest capitalized 68 67 62 57 38
Interest incurred on debt 552 464 242 174 208

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

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 2022 to 2023 and from 2023 to 2024.
Interest capitalized Amount of interest costs capitalized disclosed as an adjusting item to interest costs incurred. Linde plc interest capitalized increased from 2022 to 2023 and from 2023 to 2024.
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 2022 to 2023 and from 2023 to 2024.

Adjusted Interest Coverage Ratio

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Net income, Linde plc 6,565 6,199 4,147 3,826 2,501
Add: Net income attributable to noncontrolling interest 172 142 134 135 125
Less: Income from discontinued operations, net of tax 5 4
Add: Income tax expense 2,002 1,814 1,434 1,262 847
Add: Interest expense 484 397 180 117 170
Earnings before interest and tax (EBIT) 9,223 8,552 5,895 5,335 3,639
 
Interest incurred on debt 552 464 242 174 208
Financial Ratio With and Without Capitalized Interest
Interest coverage ratio (without capitalized interest)1 19.06 21.54 32.75 45.60 21.41
Adjusted interest coverage ratio (with capitalized interest)2 16.71 18.43 24.36 30.66 17.50

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

1 Interest coverage ratio (without capitalized interest) = EBIT ÷ Interest expense
= 9,223 ÷ 484 = 19.06

2 Adjusted interest coverage ratio (with capitalized interest) = EBIT ÷ Interest incurred on debt
= 9,223 ÷ 552 = 16.71


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 2022 to 2023 and from 2023 to 2024.