Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.

Solvency Ratios (Summary)
Debt to Equity
Debt to Equity (including Operating Lease Liability)
Debt to Capital
Debt to Capital (including Operating Lease Liability)
Debt to Assets
Debt to Assets (including Operating Lease Liability)
Financial Leverage
Interest Coverage
Fixed Charge Coverage

Linde plc, solvency ratios

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Debt Ratios
Debt to equity	0.49	0.45	0.33	0.34	0.28
Debt to equity (including operating lease liability)	0.51	0.47	0.35	0.36	0.30
Debt to capital	0.33	0.31	0.25	0.26	0.22
Debt to capital (including operating lease liability)	0.34	0.32	0.26	0.27	0.23
Debt to assets	0.24	0.23	0.18	0.18	0.16
Debt to assets (including operating lease liability)	0.25	0.24	0.19	0.20	0.17
Financial leverage	2.03	1.99	1.85	1.86	1.76
Coverage Ratios
Interest coverage	21.54	32.75	45.60	21.41	21.27
Fixed charge coverage	12.98	13.32	13.02	7.79	6.92

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).

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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.

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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.

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, Industry
Materials	0.51	0.52	0.41	0.45	0.41

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

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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.

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), Industry
Materials	0.53	0.54	0.43	0.47	0.43

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

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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.

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, Industry
Materials	0.34	0.34	0.29	0.31	0.29

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

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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.

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), Industry
Materials	0.35	0.35	0.30	0.32	0.30

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

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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.

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, Industry
Materials	0.22	0.22	0.18	0.20	0.19

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

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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.

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), Industry
Materials	0.23	0.23	0.19	0.21	0.20

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

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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.

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, Industry
Materials	2.36	2.35	2.23	2.27	2.18

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

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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.

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, Industry
Materials	16.54	17.84	18.92	7.87	5.36

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
Interest coverage = EBIT ÷ Interest expense
= 8,552 ÷ 397 = 21.54

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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.

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, Industry
Materials	12.40	12.65	12.30	5.31	3.65

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

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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.

Linde plc (NASDAQ:LIN)

Analysis of Solvency Ratios

Solvency Ratios (Summary)

Debt to Equity

Debt to Equity (including Operating Lease Liability)

Debt to Capital

Debt to Capital (including Operating Lease Liability)

Debt to Assets

Debt to Assets (including Operating Lease Liability)

Financial Leverage

Interest Coverage

Fixed Charge Coverage