Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Linde plc, profitability 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).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Linde plc gross profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Linde plc operating profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Linde plc net profit margin ratio improved from 2021 to 2022 and from 2022 to 2023. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Linde plc ROE improved from 2021 to 2022 and from 2022 to 2023. |
| ROA | A profitability ratio calculated as net income divided by total assets. | Linde plc ROA improved from 2021 to 2022 and from 2022 to 2023. |
Gross Profit Margin
Linde plc, gross profit margin 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) | ||||||
| Gross margin | 15,362) | 13,914) | 13,250) | 11,860) | 11,584) | |
| Sales | 32,854) | 33,364) | 30,793) | 27,243) | 28,228) | |
| Profitability Ratio | ||||||
| Gross profit margin1 | 46.76% | 41.70% | 43.03% | 43.53% | 41.04% | |
| Benchmarks | ||||||
| Gross Profit Margin, Competitors2 | ||||||
| Sherwin-Williams Co. | 46.67% | 42.10% | 42.83% | 47.29% | 44.89% | |
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
Gross profit margin = 100 × Gross margin ÷ Sales
= 100 × 15,362 ÷ 32,854 = 46.76%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Linde plc gross profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
Operating Profit Margin
Linde plc, operating profit margin 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) | ||||||
| Operating profit | 8,024) | 5,369) | 4,984) | 3,322) | 2,933) | |
| Sales | 32,854) | 33,364) | 30,793) | 27,243) | 28,228) | |
| Profitability Ratio | ||||||
| Operating profit margin1 | 24.42% | 16.09% | 16.19% | 12.19% | 10.39% | |
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| Sherwin-Williams Co. | 15.48% | 13.56% | 12.83% | 15.58% | 12.78% | |
| Operating Profit Margin, Sector | ||||||
| Chemicals | 20.73% | 15.08% | 14.87% | 13.56% | — | |
| Operating Profit Margin, Industry | ||||||
| Materials | 22.62% | 19.68% | 21.62% | 14.41% | — | |
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
Operating profit margin = 100 × Operating profit ÷ Sales
= 100 × 8,024 ÷ 32,854 = 24.42%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Linde plc operating profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
Net Profit Margin
Linde plc, net profit margin 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) | |
| Sales | 32,854) | 33,364) | 30,793) | 27,243) | 28,228) | |
| Profitability Ratio | ||||||
| Net profit margin1 | 18.87% | 12.43% | 12.42% | 9.18% | 8.09% | |
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| Sherwin-Williams Co. | 10.36% | 9.12% | 9.35% | 11.06% | 8.61% | |
| Net Profit Margin, Sector | ||||||
| Chemicals | 15.36% | 11.11% | 11.22% | 9.94% | — | |
| Net Profit Margin, Industry | ||||||
| Materials | 13.25% | 12.31% | 13.59% | 8.58% | — | |
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
Net profit margin = 100 × Net income, Linde plc ÷ Sales
= 100 × 6,199 ÷ 32,854 = 18.87%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Linde plc net profit margin ratio improved from 2021 to 2022 and from 2022 to 2023. |
Return on Equity (ROE)
Linde plc, ROE 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) | |
| Total Linde plc shareholders’ equity | 39,720) | 40,028) | 44,035) | 47,317) | 49,074) | |
| Profitability Ratio | ||||||
| ROE1 | 15.61% | 10.36% | 8.69% | 5.29% | 4.66% | |
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| Sherwin-Williams Co. | 64.29% | 65.12% | 76.50% | 56.23% | 37.38% | |
| ROE, Sector | ||||||
| Chemicals | 19.77% | 14.30% | 12.24% | 8.90% | — | |
| ROE, Industry | ||||||
| Materials | 17.36% | 16.42% | 16.54% | 8.40% | — | |
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
ROE = 100 × Net income, Linde plc ÷ Total Linde plc shareholders’ equity
= 100 × 6,199 ÷ 39,720 = 15.61%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Linde plc ROE improved from 2021 to 2022 and from 2022 to 2023. |
Return on Assets (ROA)
Linde plc, ROA 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) | |
| Total assets | 80,811) | 79,658) | 81,605) | 88,229) | 86,612) | |
| Profitability Ratio | ||||||
| ROA1 | 7.67% | 5.21% | 4.69% | 2.83% | 2.64% | |
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| Sherwin-Williams Co. | 10.41% | 8.94% | 9.02% | 9.95% | 7.52% | |
| ROA, Sector | ||||||
| Chemicals | 8.28% | 6.03% | 5.56% | 4.17% | — | |
| ROA, Industry | ||||||
| Materials | 6.68% | 6.28% | 6.65% | 3.40% | — | |
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
ROA = 100 × Net income, Linde plc ÷ Total assets
= 100 × 6,199 ÷ 80,811 = 7.67%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | Linde plc ROA improved from 2021 to 2022 and from 2022 to 2023. |