Linde plc (NASDAQ:LIN)

Debt to Equity Ratio

The debt to equity ratio exhibits a generally increasing trend from the first quarter of 2021 through the third quarter of 2025. Starting at 0.34 in March 2021, the ratio fluctuates slightly in the early periods but shows a consistent upward movement from mid-2022 onwards, reaching 0.67 by the third quarter of 2025. This indicates a growing reliance on debt financing relative to equity over the observed period.

Debt to Capital Ratio

The debt to capital ratio follows a similar upward trajectory, rising steadily from 0.25 in March 2021 to 0.40 by September 2025. Minor fluctuations are observed in early periods, but the overall increase suggests an increasing proportion of debt within the company’s capital structure. The leveling off around 0.36 to 0.40 between late 2023 and 2025 indicates a stabilization at a higher leverage level compared to earlier years.

Debt to Assets Ratio

Starting at 0.19 in March 2021, the debt to assets ratio shows a gradual increase over time, reaching 0.30 in the third quarter of 2025. The ratio experiences slight periodic variations but maintains an upward slope, implying an increased share of assets financed through debt. The steady pattern suggests that asset growth has not outpaced the growth in debt financing.

Financial Leverage Ratio

The financial leverage ratio, which represents the equity multiplier, rises steadily from 1.84 in the first quarter of 2021 to 2.23 by the third quarter of 2025. Early fluctuations are mild, but from mid-2022 onwards, the pace of increase accelerates, indicating the company is utilizing more debt relative to its equity base to finance its assets. This aligns with the trends shown in the other debt-related measures.

Overall Analysis

Across all leverage ratios, the data reveals a clear pattern of increasing indebtedness over the nearly five-year period. The company appears to be progressively increasing its debt levels relative to equity, total capital, and assets. This strategic shift might suggest an attempt to capitalize on favorable borrowing conditions or to fund growth initiatives. However, the rising leverage also indicates increased financial risk, which warrants careful monitoring to ensure that the company's capacity to meet its debt obligations remains strong.

The financial data reveals evolving trends in the company's capital structure over multiple quarterly periods. The analysis focuses on total debt, shareholders’ equity, and the debt-to-equity ratio to assess the company's leverage dynamics.

Total Debt

Total debt exhibits a general upward trajectory from March 2021 through September 2025. Beginning at $15.75 billion in early 2021, debt levels fluctuate modestly in the initial periods but increase more steadily from late 2022 onward. By September 2025, total debt approaches approximately $25.9 billion, indicating a significant increase of about 65% over the nearly five-year span. This suggests an increased reliance on debt financing or expanded borrowing over time.

Total Shareholders’ Equity

Shareholders’ equity demonstrates a contrasting pattern, initially declining from $46.21 billion in March 2021 to a low near $37.6 billion by September 2022. Equity then experiences some recovery but remains relatively flat with minor fluctuations, ending at approximately $38.6 billion by September 2025. Overall, equity shows a decline of roughly 16% compared to the starting point, reflecting possible impacts of retained losses, dividends, stock repurchases, or other comprehensive income components reducing equity.

Debt-to-Equity Ratio

The debt-to-equity ratio shows an increasing trend across the entire period, reflecting the combined effects of growing debt and diminishing equity. Starting at 0.34 in March 2021, the ratio rises steadily, crossing 0.50 around early 2023 and reaching approximately 0.67 by late 2025. This escalation indicates a greater proportion of debt relative to equity, pointing to heightened financial leverage and potentially increased financial risk.

In summary, the company's capital structure has shifted towards increased leverage, characterized by substantial growth in debt alongside a decrease and subsequent stabilization of shareholders’ equity. The rising debt-to-equity ratio suggests an intensified use of debt financing, which may impact the company’s risk profile, interest obligations, and financial flexibility going forward.

Total Debt

The total debt displays a generally increasing trend over the periods analyzed. Beginning at approximately 15.75 billion USD in the first quarter of 2021, it experiences fluctuations with notable peaks and troughs, reaching its lowest point near 14.21 billion USD in the fourth quarter of 2021. Subsequently, the debt levels steadily rise, ultimately reaching approximately 25.93 billion USD by the third quarter of 2025. This represents a significant increase in debt over the observed timeframe, reflecting either increased borrowing or refinancing activities.

Total Capital

Total capital shows a variable trend with moderate fluctuations. Starting from around 61.96 billion USD in early 2021, it declines to a low of roughly 52.97 billion USD in the third quarter of 2022. Thereafter, a recovery phase is evident, with total capital rising back to about 64.54 billion USD by late 2025. Despite some volatility, the capital base appears relatively stable over the medium term with a slight upward trend towards the end of the period.

Debt to Capital Ratio

The debt to capital ratio reflects the relative proportion of debt financing in the overall capital structure. Initially maintained near 0.25 in early 2021, the ratio increases gradually over time, with minor fluctuations. By late 2021 and into 2022, the ratio moves from approximately 0.24 up to around 0.31 and continues this upward trajectory. By the third quarter of 2025, the ratio reaches 0.40, indicating a higher reliance on debt financing relative to total capital. This trend suggests an increasing leverage position over the observed period.

Summary

The overall financial pattern indicates an incremental increase in total debt accompanied by a relatively stable yet fluctuating capital base. The rising debt to capital ratio suggests the entity is increasing its leverage over time. This might imply a strategic shift towards greater debt utilization for financing purposes, which could impact financial risk profiles. The trends warrant close monitoring to assess sustainability and implications for cost of capital and credit risk.

The analysis of the financial data reveals several noteworthy trends in the company's debt and asset management over the observed periods.

Total Debt

The total debt exhibits a fluctuating but generally upward trajectory from March 2021 to September 2025. Starting at US$15,750 million in March 2021, the debt experiences some variability, with notable increases especially from December 2022 onward. It peaks at US$25,925 million in September 2025. This indicates a considerable rise in borrowing over time, suggesting increased leverage or financing activities by the company during these years.

Total Assets

Total assets remain relatively stable throughout the timeline, with figures oscillating slightly but not showing a consistent upward or downward trend. Beginning at US$84,993 million in March 2021, assets dip to a low point around September 2022 and December 2023 but recover thereafter, peaking at US$86,078 million in June 2025 before a slight decrease to US$85,993 million in September 2025. Overall, asset levels suggest steady capitalization without significant expansion or contraction.

Debt to Assets Ratio

The debt to assets ratio steadily increases over the periods, moving from 0.19 in March 2021 to 0.30 by September 2025. This gradual rise reflects that total debt is growing at a faster rate than total assets, indicating a higher financial leverage. The increase is consistent, with the ratio crossing 0.20 in March 2022 and remaining on an upward trend through to the last period. This ratio trend points to a potential rise in financial risk as the company assumes more debt relative to its asset base.

In summary, the company shows a pattern of increasing indebtedness without a proportional increase in assets, leading to a higher debt to assets ratio. This trend could imply strategic borrowing to finance operations or investments, but it also raises considerations regarding the balance between risk and liquidity. The steadiness in asset levels alongside rising debt suggests that the company may need to monitor its leverage to maintain financial stability over the long term.

The analysis of the quarterly financial data reveals several important trends related to the company’s balance sheet, particularly focusing on total assets, shareholders’ equity, and financial leverage over the periods indicated.

Total Assets

Total assets exhibit a somewhat fluctuating trend over the examined quarters. Starting from approximately 84,993 million USD in the first quarter of 2021, there is a general decline through to the third quarter of 2022, reaching a low near 74,323 million USD. Subsequently, assets rebound to levels around 80,000 million USD in most quarters leading into early 2025, peaking at about 86,078 million USD in mid-2025 before slightly decreasing again. This pattern indicates periodic adjustments in asset base, likely reflecting operational or strategic changes affecting asset holdings.

Total Linde plc Shareholders’ Equity

Shareholders’ equity demonstrates a downward trajectory for most of the period covered. Starting at around 46,210 million USD in early 2021, equity decreases consistently to approximately 37,628 million USD by the third quarter of 2022. Although a modest recovery is observed toward the end of 2022 and intermittently thereafter, equity remains below the early 2021 level, ranging mostly between 38,000 and 40,000 million USD through 2024 and early 2025. This decline coupled with a slow recovery suggests pressures on retained earnings or other equity components, possibly due to factors like dividend payouts, share repurchases, or net losses.

Financial Leverage

The financial leverage ratio consistently increases over the observed timeframe, starting around 1.84 in early 2021 and rising steadily to about 2.23 by late 2025. This upward trend indicates that the company is incrementally relying more on debt relative to equity financing. The leverage increased gradually, reflecting a shift in the capital structure toward higher use of liabilities, which could imply increased financial risk and higher interest expenses but may also suggest strategic borrowing to finance growth or acquisitions.

Overall, the observed patterns indicate that while total assets have seen some variability, there is an underlying trend of declining equity coupled with rising financial leverage. This suggests a capital structure shift towards greater indebtedness. The changes in shareholders’ equity and asset base may be linked to operational results, capital management decisions, or market conditions experienced by the company over this period. Continued monitoring of leverage ratios and equity movements will be essential to assess financial risk and sustainability.