Linde plc (NASDAQ:LIN)

Debt to Equity Ratio

The debt to equity ratio exhibits a generally increasing trend over the analyzed periods. Starting at 0.38 in March 2020, the ratio fluctuates slightly in the initial quarters but demonstrates a gradual rise from 0.45 in December 2022 to 0.63 projected by March 2025. This indicates a growing reliance on debt relative to shareholder equity, suggesting a possible increase in financial risk or a strategic shift towards debt financing over time.

Debt to Capital Ratio

This ratio remains relatively stable but shows a mild upward trajectory. Beginning at 0.27 in the first quarter of 2020, it oscillates marginally before increasing from 0.31 in December 2022 to 0.39 by March 2025. The gradual increase reflects a consistent slight rise in the proportion of debt within the company's capital structure, aligning with the trends seen in the debt to equity ratio.

Debt to Assets Ratio

The debt to assets ratio follows a pattern similar to the other leverage metrics, starting at 0.20 in March 2020 and maintaining relative stability with minor fluctuations. From 0.22 in December 2022, it ascends steadily to 0.29 by March 2025. This suggests an increasing share of assets financed through debt, reinforcing the theme of heightened leverage over time.

Financial Leverage Ratio

This ratio shows a gradual increase, beginning at 1.88 in March 2020. After small fluctuations around 1.84 to 1.90 in the earlier periods, it climbs steadily above 2.0 from about March 2023 onward, reaching 2.17 by March 2025. The rising financial leverage ratio indicates that the company is incrementally using more debt relative to equity to fund its assets, which may imply increasing financial risk but could also enhance returns if managed effectively.

Summary

Overall, the analyzed financial leverage ratios indicate a clear trend of increasing indebtedness relative to equity, capital, and assets. The consistent upward movement in these measures over the observed timeline suggests the company is progressively raising its leverage. This might be a strategic approach to optimize capital structure or finance growth; however, it also signals a higher exposure to financial risk due to the greater relative debt levels. Stakeholders should monitor these trends closely to assess the impact on the company's solvency and risk profile going forward.

Total Debt

The total debt shows a generally increasing trend over the observed period. Initially, total debt was US$16,875 million at the end of March 2020 and fluctuated moderately through 2020 and 2021, reaching a low of US$14,207 million at the end of December 2021. From 2022 onward, total debt increased substantially, rising from US$16,456 million at the end of March 2022 to US$23,897 million at the end of March 2025. This suggests a growing reliance on debt financing in recent years, especially during the 2023 and early 2024 periods.

Total Shareholders’ Equity

Shareholders’ equity exhibited a declining trend across the timeline. Starting at US$44,776 million in March 2020, equity saw minor fluctuations before undergoing a notable decrease through 2021 and 2022. From US$44,963 million in March 2022, equity decreased steadily to US$38,032 million by March 2025. This decline indicates shrinking net asset value and could reflect impacts from operational performance, dividend payments, share repurchases, or other equity-related activities.

Debt to Equity Ratio

The debt to equity ratio remained relatively stable from 0.38 in March 2020 to approximately 0.34 in late 2020 and early 2021, indicating moderate leverage. However, from mid-2021 onward this ratio increased progressively, moving from 0.38 in September 2021 to 0.63 by March 2025. This increase corresponds with the rising total debt and declining equity, signifying a fairly substantial rise in financial leverage. The company's capital structure has therefore shifted toward higher debt dependency, which could imply increased financial risk but also potential leverage benefits.

Summary of Trends

Overall, the company has experienced increasing debt levels coupled with decreasing shareholders’ equity over the examined periods. This has led to a marked rise in the debt to equity ratio, suggesting a strategic or necessary adjustment toward greater leverage. The financial position indicates heightened exposure to debt obligations, which necessitates consideration of the implications for liquidity, cost of capital, and financial stability going forward.

The financial data reflects the trends in debt management and capital structure over multiple quarters.

Total Debt

Total debt shows a fluctuating yet generally increasing trend over the periods analyzed. It started at approximately $16.9 billion in March 2020, reaching peaks and troughs through 2021 and 2022. From late 2022 onward, there is a clear upward trajectory, with debt increasing from around $18.8 billion in early 2023 to nearly $23.9 billion by March 2025, indicating a growing leverage position.

Total Capital

Total capital has displayed variability with a slight downward trend initially from about $61.7 billion in March 2020 to a low around $52.9 billion by September 2022. After that period, the capital base recovers moderately, hovering between $58.7 billion and $61.9 billion during 2023 and into early 2025. This overall movement suggests some volatility but relative stabilization in the company's capital base after mid-2022.

Debt to Capital Ratio

The debt to capital ratio starts near 0.27 in early 2020, with minor fluctuations in the 0.24 to 0.29 range through 2020 and 2021. From 2022 onward, this ratio shows a clear upward trend, rising from approximately 0.31 at the start of 2022 to 0.39 by March 2025. This indicates an increasing proportion of debt relative to total capital, reflecting a higher financial leverage and potentially greater financial risk over time.

In summary, the data reveals a pattern of increasing indebtedness alongside a largely stable but fluctuating capital base, leading to a progressive rise in leverage as expressed by the debt-to-capital ratio. These trends highlight an increasing reliance on debt financing, which may influence the company's risk profile and cost of capital going forward.

Total Debt

Over the observed periods, total debt exhibited considerable fluctuations with an overall increasing trend. Beginning at $16,875 million in March 2020, debt generally rose until peaking at $17,803 million in September 2020, followed by a decrease to $14,207 million by December 2021. Afterward, total debt resumed an upward trajectory, reaching $23,897 million by March 2025. Notably, debt levels experienced significant increases starting from mid-2022 through to early 2025, suggesting an expansion in leverage or financing activities.

Total Assets

Total assets demonstrated a declining trend from March 2020 through September 2022, decreasing from $84,369 million to $74,323 million. This downward movement was interrupted by a partial recovery between December 2022 ($79,658 million) and December 2024 ($82,546 million). However, values fluctuated moderately during this recovery, ending at $82,704 million in March 2025. Overall, assets showed variability with a tendency toward stabilization after an initial decline period.

Debt to Assets Ratio

The debt to assets ratio maintained relative stability around 0.2 during 2020, indicating moderate leverage. The ratio slightly decreased to 0.17 by December 2021, coinciding with the reduction in total debt and assets. From early 2022 onward, the ratio consistently increased, reaching 0.29 by March 2025. This rising trend indicates that debt grew at a faster pace than assets over this period, reflecting an increase in financial leverage and possibly higher risk exposure.

Summary Insights

The data reveals a pattern where total debt initially fluctuated and later increased sharply beginning in mid-2022, while total assets decreased initially and then partially recovered. The growing debt to assets ratio highlights a shift toward greater indebtedness relative to the asset base. This trend could imply increased reliance on external funding, potentially affecting financial stability and risk profile. Monitoring of debt management and asset growth strategies will be essential to maintain an optimal capital structure.

Total assets

The total assets exhibit moderate fluctuations over the period analyzed. Starting from approximately 84.4 billion US dollars at March 31, 2020, the value peaks slightly in the fourth quarter of 2020 at around 88.2 billion US dollars. A declining trend follows through 2021 and into the first three quarters of 2022, where total assets decrease to just above 74.3 billion US dollars. Subsequently, total assets recover somewhat, rising back up to roughly 80.3 billion US dollars by the end of 2022. The asset base shows relatively stable values with minor decreases and increases between 78 billion and 82.7 billion US dollars from 2023 into the first quarter of 2025, ending near 82.7 billion US dollars.

Total Linde plc shareholders’ equity

Shareholders’ equity demonstrates a declining trend over the reviewed periods. It commences at approximately 44.8 billion US dollars at March 31, 2020, with a gradual reduction observable from late 2020 onward. Equity dips to its lowest recorded values between the middle and end of 2022, hovering around 37.6 to 40 billion US dollars. Following this trough, equity levels show some stabilization through 2023 but continue a slight downward progression into the early part of 2025, finishing near 38 billion US dollars. This persistent decrease signals a reduction in net assets attributable to shareholders across the timeframe.

Financial leverage

Financial leverage, defined as the ratio of total assets to shareholders’ equity, generally increases over the period, indicating a rise in the company’s reliance on debt or other liabilities relative to equity. Starting around 1.88 at the beginning of 2020, it fluctuates modestly but shows an upward trend, particularly from early 2022 onward. By the end of 2024 and at March 31, 2025, the financial leverage ratio reaches approximately 2.17, its highest value in the series. This trend corresponds with the observed decline in shareholders’ equity and the relatively less volatile total assets, implying an increasing burden of financial obligations compared to equity.

Summary

Over the analyzed timeframe, total assets show cyclical behavior with a peak in late 2020, followed by a decline and partial recovery, ending slightly higher than early 2020 levels. Shareholders’ equity steadily decreases, reflecting diminished net asset value for shareholders. Concurrently, financial leverage increases consistently, pointing to growing leverage and potentially higher financial risk. These patterns suggest a shift towards greater use of debt or liabilities to finance assets, alongside reduced equity cushions, which may have implications for financial stability and risk profile.