Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Linde plc, solvency ratios
Based on: 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), 10-K (reporting date: 2019-12-31).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Linde plc debt to equity ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Linde plc debt to equity ratio (including operating lease liability) deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Linde plc debt to capital ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Linde plc debt to capital ratio (including operating lease liability) deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Linde plc debt to assets ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Linde plc debt to assets ratio (including operating lease liability) deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Linde plc financial leverage ratio increased from 2021 to 2022 and from 2022 to 2023. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Linde plc interest coverage ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Linde plc fixed charge coverage ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Debt to Equity
Linde plc, debt to equity calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| 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 | 19,566) | 18,070) | 14,383) | 16,317) | 13,956) | |
| Total Linde plc shareholders’ equity | 39,720) | 40,028) | 44,035) | 47,317) | 49,074) | |
| Solvency Ratio | ||||||
| Debt to equity1 | 0.49 | 0.45 | 0.33 | 0.34 | 0.28 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| Sherwin-Williams Co. | 2.65 | 3.41 | 3.95 | 2.30 | 2.11 | |
| Debt to Equity, Sector | ||||||
| Chemicals | 0.68 | 0.66 | 0.52 | 0.48 | — | |
| Debt to Equity, Industry | ||||||
| Materials | 0.65 | 0.67 | 0.55 | 0.56 | — | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Debt to equity = Total debt ÷ Total Linde plc shareholders’ equity
= 19,566 ÷ 39,720 = 0.49
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Linde plc debt to equity ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Debt to Equity (including Operating Lease Liability)
Linde plc, debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| 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 | 19,566) | 18,070) | 14,383) | 16,317) | 13,956) | |
| Current operating lease liabilities | 177) | 181) | 215) | 237) | 260) | |
| Long-term operating lease liabilities | 572) | 540) | 618) | 669) | 716) | |
| Total debt (including operating lease liability) | 20,315) | 18,791) | 15,216) | 17,223) | 14,932) | |
| Total Linde plc shareholders’ equity | 39,720) | 40,028) | 44,035) | 47,317) | 49,074) | |
| Solvency Ratio | ||||||
| Debt to equity (including operating lease liability)1 | 0.51 | 0.47 | 0.35 | 0.36 | 0.30 | |
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| Sherwin-Williams Co. | 3.18 | 4.03 | 4.72 | 2.80 | 2.53 | |
| Debt to Equity (including Operating Lease Liability), Sector | ||||||
| Chemicals | 0.74 | 0.73 | 0.57 | 0.54 | — | |
| Debt to Equity (including Operating Lease Liability), Industry | ||||||
| Materials | 0.70 | 0.72 | 0.60 | 0.61 | — | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Total Linde plc shareholders’ equity
= 20,315 ÷ 39,720 = 0.51
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Linde plc debt to equity ratio (including operating lease liability) deteriorated from 2021 to 2022 and from 2022 to 2023. |
Debt to Capital
Linde plc, debt to capital calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| 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 | 19,566) | 18,070) | 14,383) | 16,317) | 13,956) | |
| Total Linde plc shareholders’ equity | 39,720) | 40,028) | 44,035) | 47,317) | 49,074) | |
| Total capital | 59,286) | 58,098) | 58,418) | 63,634) | 63,030) | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.33 | 0.31 | 0.25 | 0.26 | 0.22 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| Sherwin-Williams Co. | 0.73 | 0.77 | 0.80 | 0.70 | 0.68 | |
| Debt to Capital, Sector | ||||||
| Chemicals | 0.40 | 0.40 | 0.34 | 0.33 | — | |
| Debt to Capital, Industry | ||||||
| Materials | 0.39 | 0.40 | 0.36 | 0.36 | — | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Debt to capital = Total debt ÷ Total capital
= 19,566 ÷ 59,286 = 0.33
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Linde plc debt to capital ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Debt to Capital (including Operating Lease Liability)
Linde plc, debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| 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 | 19,566) | 18,070) | 14,383) | 16,317) | 13,956) | |
| Current operating lease liabilities | 177) | 181) | 215) | 237) | 260) | |
| Long-term operating lease liabilities | 572) | 540) | 618) | 669) | 716) | |
| Total debt (including operating lease liability) | 20,315) | 18,791) | 15,216) | 17,223) | 14,932) | |
| Total Linde plc shareholders’ equity | 39,720) | 40,028) | 44,035) | 47,317) | 49,074) | |
| Total capital (including operating lease liability) | 60,035) | 58,819) | 59,251) | 64,540) | 64,006) | |
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | 0.34 | 0.32 | 0.26 | 0.27 | 0.23 | |
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| Sherwin-Williams Co. | 0.76 | 0.80 | 0.83 | 0.74 | 0.72 | |
| Debt to Capital (including Operating Lease Liability), Sector | ||||||
| Chemicals | 0.43 | 0.42 | 0.36 | 0.35 | — | |
| Debt to Capital (including Operating Lease Liability), Industry | ||||||
| Materials | 0.41 | 0.42 | 0.38 | 0.38 | — | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 20,315 ÷ 60,035 = 0.34
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Linde plc debt to capital ratio (including operating lease liability) deteriorated from 2021 to 2022 and from 2022 to 2023. |
Debt to Assets
Linde plc, debt to assets calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| 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 | 19,566) | 18,070) | 14,383) | 16,317) | 13,956) | |
| Total assets | 80,811) | 79,658) | 81,605) | 88,229) | 86,612) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.24 | 0.23 | 0.18 | 0.18 | 0.16 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| Sherwin-Williams Co. | 0.43 | 0.47 | 0.47 | 0.41 | 0.42 | |
| Debt to Assets, Sector | ||||||
| Chemicals | 0.28 | 0.28 | 0.23 | 0.23 | — | |
| Debt to Assets, Industry | ||||||
| Materials | 0.25 | 0.26 | 0.22 | 0.23 | — | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Debt to assets = Total debt ÷ Total assets
= 19,566 ÷ 80,811 = 0.24
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Linde plc debt to assets ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Debt to Assets (including Operating Lease Liability)
Linde plc, debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| 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 | 19,566) | 18,070) | 14,383) | 16,317) | 13,956) | |
| Current operating lease liabilities | 177) | 181) | 215) | 237) | 260) | |
| Long-term operating lease liabilities | 572) | 540) | 618) | 669) | 716) | |
| Total debt (including operating lease liability) | 20,315) | 18,791) | 15,216) | 17,223) | 14,932) | |
| Total assets | 80,811) | 79,658) | 81,605) | 88,229) | 86,612) | |
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | 0.25 | 0.24 | 0.19 | 0.20 | 0.17 | |
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| Sherwin-Williams Co. | 0.51 | 0.55 | 0.56 | 0.50 | 0.51 | |
| Debt to Assets (including Operating Lease Liability), Sector | ||||||
| Chemicals | 0.31 | 0.31 | 0.26 | 0.25 | — | |
| Debt to Assets (including Operating Lease Liability), Industry | ||||||
| Materials | 0.27 | 0.28 | 0.24 | 0.25 | — | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 20,315 ÷ 80,811 = 0.25
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Linde plc debt to assets ratio (including operating lease liability) deteriorated from 2021 to 2022 and from 2022 to 2023. |
Financial Leverage
Linde plc, financial leverage calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Total assets | 80,811) | 79,658) | 81,605) | 88,229) | 86,612) | |
| Total Linde plc shareholders’ equity | 39,720) | 40,028) | 44,035) | 47,317) | 49,074) | |
| Solvency Ratio | ||||||
| Financial leverage1 | 2.03 | 1.99 | 1.85 | 1.86 | 1.76 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| Sherwin-Williams Co. | 6.18 | 7.28 | 8.48 | 5.65 | 4.97 | |
| Financial Leverage, Sector | ||||||
| Chemicals | 2.39 | 2.37 | 2.20 | 2.13 | — | |
| Financial Leverage, Industry | ||||||
| Materials | 2.60 | 2.61 | 2.49 | 2.47 | — | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Financial leverage = Total assets ÷ Total Linde plc shareholders’ equity
= 80,811 ÷ 39,720 = 2.03
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Linde plc financial leverage ratio increased from 2021 to 2022 and from 2022 to 2023. |
Interest Coverage
Linde plc, interest coverage calculation, comparison to benchmarks
| 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) | |
| Solvency Ratio | ||||||
| Interest coverage1 | 21.54 | 32.75 | 45.60 | 21.41 | 21.27 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| Sherwin-Williams Co. | 8.45 | 7.58 | 7.72 | 8.40 | 6.67 | |
| Interest Coverage, Sector | ||||||
| Chemicals | 14.83 | 15.52 | 17.53 | 12.73 | — | |
| Interest Coverage, Industry | ||||||
| Materials | 14.00 | 14.30 | 15.36 | 8.03 | — | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Interest coverage = EBIT ÷ Interest expense
= 8,552 ÷ 397 = 21.54
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Linde plc interest coverage ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Fixed Charge Coverage
Linde plc, fixed charge coverage calculation, comparison to benchmarks
| 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) | |
| Add: Lease and rental expenses related to operating lease right of use assets | 284) | 284) | 317) | 341) | 364) | |
| Earnings before fixed charges and tax | 8,836) | 6,179) | 5,652) | 3,980) | 3,555) | |
| Interest expense | 397) | 180) | 117) | 170) | 150) | |
| Lease and rental expenses related to operating lease right of use assets | 284) | 284) | 317) | 341) | 364) | |
| Fixed charges | 681) | 464) | 434) | 511) | 514) | |
| Solvency Ratio | ||||||
| Fixed charge coverage1 | 12.98 | 13.32 | 13.02 | 7.79 | 6.92 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| Sherwin-Williams Co. | 4.29 | 3.90 | 3.77 | 4.13 | 3.47 | |
| Fixed Charge Coverage, Sector | ||||||
| Chemicals | 7.92 | 7.13 | 6.99 | 5.55 | — | |
| Fixed Charge Coverage, Industry | ||||||
| Materials | 8.89 | 8.68 | 8.75 | 4.84 | — | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 8,836 ÷ 681 = 12.98
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Linde plc fixed charge coverage ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |