Stock Analysis on Net
Stock Analysis on Net

Linde plc (NASDAQ:LIN)

Analysis of Goodwill and Intangible Assets

Microsoft Excel

Goodwill and Intangible Asset Disclosure

Linde plc, balance sheet: goodwill and intangible assets

US$ in millions

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Goodwill 25,937 26,751 25,817 27,038 28,201
Customer relationships 10,972 11,479 11,062 11,859 13,776
Brands/tradenames 2,504 2,609 2,565 2,685 2,895
Other intangible assets 1,934 1,913 1,697 1,629 1,697
Other intangible assets, cost 15,410 16,001 15,324 16,173 18,368
Accumulated amortization (4,080) (3,602) (2,904) (2,371) (2,184)
Other intangible assets, net 11,330 12,399 12,420 13,802 16,184
Goodwill and other intangible assets 37,267 39,150 38,237 40,840 44,385

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).

Item Description The company
Goodwill Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. Linde plc goodwill increased from 2022 to 2023 but then slightly decreased from 2023 to 2024 not reaching 2022 level.
Other intangible assets, net Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges. Linde plc other intangible assets, net decreased from 2022 to 2023 and from 2023 to 2024.
Goodwill and other intangible assets Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges. Linde plc goodwill and other intangible assets increased from 2022 to 2023 but then decreased significantly from 2023 to 2024.

Adjustments to Financial Statements: Removal of Goodwill

Linde plc, adjustments to financial statements

US$ in millions

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Adjustment to Total Assets
Total assets (as reported) 80,147 80,811 79,658 81,605 88,229
Less: Goodwill 25,937 26,751 25,817 27,038 28,201
Total assets (adjusted) 54,210 54,060 53,841 54,567 60,028
Adjustment to Total Linde Plc Shareholders’ Equity
Total Linde plc shareholders’ equity (as reported) 38,092 39,720 40,028 44,035 47,317
Less: Goodwill 25,937 26,751 25,817 27,038 28,201
Total Linde plc shareholders’ equity (adjusted) 12,155 12,969 14,211 16,997 19,116

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).

Linde plc, Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

Linde plc, adjusted financial ratios

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Total Asset Turnover
Reported total asset turnover 0.41 0.41 0.42 0.38 0.31
Adjusted total asset turnover 0.61 0.61 0.62 0.56 0.45
Financial Leverage
Reported financial leverage 2.10 2.03 1.99 1.85 1.86
Adjusted financial leverage 4.46 4.17 3.79 3.21 3.14
Return on Equity (ROE)
Reported ROE 17.23% 15.61% 10.36% 8.69% 5.29%
Adjusted ROE 54.01% 47.80% 29.18% 22.51% 13.08%
Return on Assets (ROA)
Reported ROA 8.19% 7.67% 5.21% 4.69% 2.83%
Adjusted ROA 12.11% 11.47% 7.70% 7.01% 4.17%

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).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Linde plc adjusted total asset turnover ratio deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Linde plc adjusted financial leverage ratio increased from 2022 to 2023 and from 2023 to 2024.
Adjusted ROE A profitability ratio calculated as net income divided by adjusted shareholders’ equity. Linde plc adjusted ROE improved from 2022 to 2023 and from 2023 to 2024.
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Linde plc adjusted ROA improved from 2022 to 2023 and from 2023 to 2024.

Linde plc, Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Sales 33,005 32,854 33,364 30,793 27,243
Total assets 80,147 80,811 79,658 81,605 88,229
Activity Ratio
Total asset turnover1 0.41 0.41 0.42 0.38 0.31
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Sales 33,005 32,854 33,364 30,793 27,243
Adjusted total assets 54,210 54,060 53,841 54,567 60,028
Activity Ratio
Adjusted total asset turnover2 0.61 0.61 0.62 0.56 0.45

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 Total asset turnover = Sales ÷ Total assets
= 33,005 ÷ 80,147 = 0.41

2 Adjusted total asset turnover = Sales ÷ Adjusted total assets
= 33,005 ÷ 54,210 = 0.61

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Linde plc adjusted total asset turnover ratio deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Total assets 80,147 80,811 79,658 81,605 88,229
Total Linde plc shareholders’ equity 38,092 39,720 40,028 44,035 47,317
Solvency Ratio
Financial leverage1 2.10 2.03 1.99 1.85 1.86
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets 54,210 54,060 53,841 54,567 60,028
Adjusted total Linde plc shareholders’ equity 12,155 12,969 14,211 16,997 19,116
Solvency Ratio
Adjusted financial leverage2 4.46 4.17 3.79 3.21 3.14

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 Financial leverage = Total assets ÷ Total Linde plc shareholders’ equity
= 80,147 ÷ 38,092 = 2.10

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted total Linde plc shareholders’ equity
= 54,210 ÷ 12,155 = 4.46

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Linde plc adjusted financial leverage ratio increased from 2022 to 2023 and from 2023 to 2024.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net income, Linde plc 6,565 6,199 4,147 3,826 2,501
Total Linde plc shareholders’ equity 38,092 39,720 40,028 44,035 47,317
Profitability Ratio
ROE1 17.23% 15.61% 10.36% 8.69% 5.29%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net income, Linde plc 6,565 6,199 4,147 3,826 2,501
Adjusted total Linde plc shareholders’ equity 12,155 12,969 14,211 16,997 19,116
Profitability Ratio
Adjusted ROE2 54.01% 47.80% 29.18% 22.51% 13.08%

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 ROE = 100 × Net income, Linde plc ÷ Total Linde plc shareholders’ equity
= 100 × 6,565 ÷ 38,092 = 17.23%

2 Adjusted ROE = 100 × Net income, Linde plc ÷ Adjusted total Linde plc shareholders’ equity
= 100 × 6,565 ÷ 12,155 = 54.01%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as net income divided by adjusted shareholders’ equity. Linde plc adjusted ROE improved from 2022 to 2023 and from 2023 to 2024.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net income, Linde plc 6,565 6,199 4,147 3,826 2,501
Total assets 80,147 80,811 79,658 81,605 88,229
Profitability Ratio
ROA1 8.19% 7.67% 5.21% 4.69% 2.83%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net income, Linde plc 6,565 6,199 4,147 3,826 2,501
Adjusted total assets 54,210 54,060 53,841 54,567 60,028
Profitability Ratio
Adjusted ROA2 12.11% 11.47% 7.70% 7.01% 4.17%

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 ROA = 100 × Net income, Linde plc ÷ Total assets
= 100 × 6,565 ÷ 80,147 = 8.19%

2 Adjusted ROA = 100 × Net income, Linde plc ÷ Adjusted total assets
= 100 × 6,565 ÷ 54,210 = 12.11%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Linde plc adjusted ROA improved from 2022 to 2023 and from 2023 to 2024.