Stock Analysis on Net
Stock Analysis on Net

Linde plc (NASDAQ:LIN)

Analysis of Income Taxes

Microsoft Excel

Income Tax Expense (Benefit)

Linde plc, income tax expense (benefit), continuing operations

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
U.S. federal 504 291 486 287 185
State and local 106 116 92 87 17
Non-U.S. 1,534 1,491 1,239 1,142 1,013
Current tax expense 2,144 1,898 1,817 1,516 1,215
U.S. federal 3 57 (12) 63 20
State and local 11 5 7 8 7
Non-U.S. (156) (146) (378) (325) (395)
Deferred tax benefit (142) (84) (383) (254) (368)
Provision for income taxes 2,002 1,814 1,434 1,262 847

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
Current tax expense Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations. Linde plc current tax expense increased from 2022 to 2023 and from 2023 to 2024.
Deferred tax benefit Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations. Linde plc deferred tax benefit increased from 2022 to 2023 but then slightly decreased from 2023 to 2024.
Provision for income taxes Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Linde plc provision for income taxes increased from 2022 to 2023 and from 2023 to 2024.

Effective Income Tax Rate (EITR)

Linde plc, effective income tax rate (EITR) reconciliation

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
U.S. statutory income tax rate 21.00% 21.00% 21.00% 21.00% 21.00%
State and local taxes, net of federal benefit 1.20% 1.30% 1.50% 1.60% 0.60%
Tax on Non-U.S. activities 2.20% 2.10% 3.20% 4.30% 4.90%
Share-Based compensation -0.80% -0.80% -0.70% -1.10% -1.60%
Russia charges 0.00% 0.00% 1.90% 0.00% 0.00%
Other -0.20% -0.90% -1.00% -1.10% 0.10%
Effective tax rate 23.40% 22.70% 25.90% 24.70% 25.00%

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
Effective tax rate Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Linde plc effective tax rate decreased from 2022 to 2023 but then slightly increased from 2023 to 2024.

Components of Deferred Tax Assets and Liabilities

Linde plc, components of deferred tax assets and liabilities

US$ in millions

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Carryforwards 505 285 289 358 386
Benefit plans and related 16 243 165 607 814
Inventory 87 82 68 57 70
Accruals and other 827 858 1,001 1,042 1,243
Deferred tax assets, before valuation allowances 1,435 1,468 1,523 2,064 2,513
Valuation allowances (146) (176) (276) (235) (243)
Deferred tax assets 1,289 1,292 1,247 1,829 2,270
Fixed assets (2,378) (2,686) (2,775) (3,177) (3,430)
Goodwill (233) (215) (173) (166) (173)
Other intangible assets (2,638) (2,872) (2,939) (3,263) (3,703)
Subsidiary/equity investments (535) (586) (545) (586) (609)
Other (736) (456) (471) (634) (791)
Deferred tax liabilities (6,520) (6,815) (6,903) (7,826) (8,706)
Net deferred tax assets (liabilities) (5,231) (5,523) (5,656) (5,997) (6,436)

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
Deferred tax assets, before valuation allowances Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Linde plc deferred tax assets, before valuation allowances decreased from 2022 to 2023 and from 2023 to 2024.
Deferred tax assets Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Linde plc deferred tax assets increased from 2022 to 2023 but then slightly decreased from 2023 to 2024.
Net deferred tax assets (liabilities) Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting. Linde plc net deferred tax assets (liabilities) increased from 2022 to 2023 and from 2023 to 2024.

Deferred Tax Assets and Liabilities, Classification

Linde plc, deferred tax assets and liabilities, classification

US$ in millions

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Deferred tax assets (included in Other long-term assets) 428 226 230 242 268
Deferred tax liabilities (included in Deferred credits) 5,659 5,749 5,886 6,239 6,704

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
Deferred tax assets (included in Other long-term assets) Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent. Linde plc deferred tax assets (included in Other long-term assets) decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.
Deferred tax liabilities (included in Deferred credits) Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent. Linde plc deferred tax liabilities (included in Deferred credits) decreased from 2022 to 2023 and from 2023 to 2024.

Adjustments to Financial Statements: Removal of Deferred Taxes

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: Noncurrent deferred tax assets, net 428 226 230 242 268
Total assets (adjusted) 79,719 80,585 79,428 81,363 87,961
Adjustment to Total Liabilities
Total liabilities (as reported) 40,659 39,716 38,271 36,164 38,647
Less: Noncurrent deferred tax liabilities, net 5,659 5,749 5,886 6,239 6,704
Total liabilities (adjusted) 35,000 33,967 32,385 29,925 31,943
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: Net deferred tax assets (liabilities) (5,231) (5,523) (5,656) (5,997) (6,436)
Total Linde plc shareholders’ equity (adjusted) 43,323 45,243 45,684 50,032 53,753
Adjustment to Net Income, Linde Plc
Net income, Linde plc (as reported) 6,565 6,199 4,147 3,826 2,501
Add: Deferred income tax expense (benefit) (142) (84) (383) (254) (368)
Net income, Linde plc (adjusted) 6,423 6,115 3,764 3,572 2,133

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 Deferred Taxes (Summary)

Linde plc, adjusted financial ratios

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net Profit Margin
Reported net profit margin 19.89% 18.87% 12.43% 12.42% 9.18%
Adjusted net profit margin 19.46% 18.61% 11.28% 11.60% 7.83%
Total Asset Turnover
Reported total asset turnover 0.41 0.41 0.42 0.38 0.31
Adjusted total asset turnover 0.41 0.41 0.42 0.38 0.31
Financial Leverage
Reported financial leverage 2.10 2.03 1.99 1.85 1.86
Adjusted financial leverage 1.84 1.78 1.74 1.63 1.64
Return on Equity (ROE)
Reported ROE 17.23% 15.61% 10.36% 8.69% 5.29%
Adjusted ROE 14.83% 13.52% 8.24% 7.14% 3.97%
Return on Assets (ROA)
Reported ROA 8.19% 7.67% 5.21% 4.69% 2.83%
Adjusted ROA 8.06% 7.59% 4.74% 4.39% 2.42%

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 net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Linde plc adjusted net profit margin ratio improved from 2022 to 2023 and from 2023 to 2024.
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 improved from 2023 to 2024 not reaching 2022 level.
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 adjusted 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 adjusted 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 Net Profit Margin

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
Sales 33,005 32,854 33,364 30,793 27,243
Profitability Ratio
Net profit margin1 19.89% 18.87% 12.43% 12.42% 9.18%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income, Linde plc 6,423 6,115 3,764 3,572 2,133
Sales 33,005 32,854 33,364 30,793 27,243
Profitability Ratio
Adjusted net profit margin2 19.46% 18.61% 11.28% 11.60% 7.83%

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 Net profit margin = 100 × Net income, Linde plc ÷ Sales
= 100 × 6,565 ÷ 33,005 = 19.89%

2 Adjusted net profit margin = 100 × Adjusted net income, Linde plc ÷ Sales
= 100 × 6,423 ÷ 33,005 = 19.46%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Linde plc adjusted net profit margin ratio improved from 2022 to 2023 and from 2023 to 2024.

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 Deferred Taxes
Selected Financial Data (US$ in millions)
Sales 33,005 32,854 33,364 30,793 27,243
Adjusted total assets 79,719 80,585 79,428 81,363 87,961
Activity Ratio
Adjusted total asset turnover2 0.41 0.41 0.42 0.38 0.31

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 ÷ 79,719 = 0.41

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 improved from 2023 to 2024 not reaching 2022 level.

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 Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets 79,719 80,585 79,428 81,363 87,961
Adjusted total Linde plc shareholders’ equity 43,323 45,243 45,684 50,032 53,753
Solvency Ratio
Adjusted financial leverage2 1.84 1.78 1.74 1.63 1.64

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
= 79,719 ÷ 43,323 = 1.84

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 Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income, Linde plc 6,423 6,115 3,764 3,572 2,133
Adjusted total Linde plc shareholders’ equity 43,323 45,243 45,684 50,032 53,753
Profitability Ratio
Adjusted ROE2 14.83% 13.52% 8.24% 7.14% 3.97%

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 × Adjusted net income, Linde plc ÷ Adjusted total Linde plc shareholders’ equity
= 100 × 6,423 ÷ 43,323 = 14.83%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted 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 Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income, Linde plc 6,423 6,115 3,764 3,572 2,133
Adjusted total assets 79,719 80,585 79,428 81,363 87,961
Profitability Ratio
Adjusted ROA2 8.06% 7.59% 4.74% 4.39% 2.42%

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 × Adjusted net income, Linde plc ÷ Adjusted total assets
= 100 × 6,423 ÷ 79,719 = 8.06%

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