Stock Analysis on Net

Linde plc (NASDAQ:LIN)

Analysis of Short-term (Operating) Activity Ratios 

Microsoft Excel

Short-term Activity Ratios (Summary)

Linde plc, short-term (operating) activity ratios

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Turnover Ratios
Inventory turnover 8.81 8.27 9.83 10.12 8.90
Receivables turnover 7.14 6.96 7.32 6.84 6.54
Payables turnover 6.84 5.79 6.49 5.01 4.97
Working capital turnover
Average No. Days
Average inventory processing period 41 44 37 36 41
Add: Average receivable collection period 51 52 50 53 56
Operating cycle 92 96 87 89 97
Less: Average payables payment period 53 63 56 73 73
Cash conversion cycle 39 33 31 16 24

Based on: 10-K (reporting date: 2024-12-31), 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).

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Linde plc inventory turnover ratio deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024.
Receivables turnover An activity ratio equal to revenue divided by receivables. Linde plc receivables turnover ratio deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Linde plc payables turnover ratio decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. Linde plc number of days of inventory outstanding deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024.
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover.
Operating cycle Equal to average inventory processing period plus average receivables collection period. Linde plc operating cycle deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024.
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. Linde plc number of days of payables outstanding increased from 2022 to 2023 but then decreased significantly from 2023 to 2024.
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. Linde plc cash conversion cycle deteriorated from 2022 to 2023 and from 2023 to 2024.

Inventory Turnover

Linde plc, inventory turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Cost of sales, exclusive of depreciation and amortization 17,143 17,492 19,450 17,543 15,383
Inventories 1,946 2,115 1,978 1,733 1,729
Short-term Activity Ratio
Inventory turnover1 8.81 8.27 9.83 10.12 8.90
Benchmarks
Inventory Turnover, Competitors2
Sherwin-Williams Co. 5.20 5.28 4.88 5.92 5.37
Inventory Turnover, Sector
Chemicals 6.86 6.70 7.01 7.91 7.09
Inventory Turnover, Industry
Materials 4.24 4.33 4.84 5.27 4.94

Based on: 10-K (reporting date: 2024-12-31), 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).

1 2024 Calculation
Inventory turnover = Cost of sales, exclusive of depreciation and amortization ÷ Inventories
= 17,143 ÷ 1,946 = 8.81

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Linde plc inventory turnover ratio deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024.

Receivables Turnover

Linde plc, receivables turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Sales 33,005 32,854 33,364 30,793 27,243
Accounts receivable, net 4,622 4,718 4,559 4,499 4,167
Short-term Activity Ratio
Receivables turnover1 7.14 6.96 7.32 6.84 6.54
Benchmarks
Receivables Turnover, Competitors2
Sherwin-Williams Co. 9.67 9.34 8.64 8.48 8.84
Receivables Turnover, Sector
Chemicals 8.00 7.78 7.79 7.41 7.30
Receivables Turnover, Industry
Materials 10.75 9.38 9.26 9.18 8.38

Based on: 10-K (reporting date: 2024-12-31), 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).

1 2024 Calculation
Receivables turnover = Sales ÷ Accounts receivable, net
= 33,005 ÷ 4,622 = 7.14

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Receivables turnover An activity ratio equal to revenue divided by receivables. Linde plc receivables turnover ratio deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024.

Payables Turnover

Linde plc, payables turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Cost of sales, exclusive of depreciation and amortization 17,143 17,492 19,450 17,543 15,383
Accounts payable 2,507 3,020 2,995 3,503 3,095
Short-term Activity Ratio
Payables turnover1 6.84 5.79 6.49 5.01 4.97
Benchmarks
Payables Turnover, Competitors2
Sherwin-Williams Co. 5.28 5.31 5.26 4.74 4.57
Payables Turnover, Sector
Chemicals 6.10 5.58 5.94 4.90 4.81
Payables Turnover, Industry
Materials 6.20 5.83 5.82 5.41 5.49

Based on: 10-K (reporting date: 2024-12-31), 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).

1 2024 Calculation
Payables turnover = Cost of sales, exclusive of depreciation and amortization ÷ Accounts payable
= 17,143 ÷ 2,507 = 6.84

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Linde plc payables turnover ratio decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.

Working Capital Turnover

Linde plc, working capital turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Current assets 12,945 12,620 13,047 10,159 10,924
Less: Current liabilities 14,544 15,717 16,479 13,643 13,740
Working capital (1,599) (3,097) (3,432) (3,484) (2,816)
 
Sales 33,005 32,854 33,364 30,793 27,243
Short-term Activity Ratio
Working capital turnover1
Benchmarks
Working Capital Turnover, Competitors2
Sherwin-Williams Co.
Working Capital Turnover, Sector
Chemicals
Working Capital Turnover, Industry
Materials 17.02 19.50 13.54 15.37 19.50

Based on: 10-K (reporting date: 2024-12-31), 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).

1 2024 Calculation
Working capital turnover = Sales ÷ Working capital
= 33,005 ÷ -1,599 =

2 Click competitor name to see calculations.


Average Inventory Processing Period

Linde plc, average inventory processing period calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data
Inventory turnover 8.81 8.27 9.83 10.12 8.90
Short-term Activity Ratio (no. days)
Average inventory processing period1 41 44 37 36 41
Benchmarks (no. days)
Average Inventory Processing Period, Competitors2
Sherwin-Williams Co. 70 69 75 62 68
Average Inventory Processing Period, Sector
Chemicals 53 54 52 46 51
Average Inventory Processing Period, Industry
Materials 86 84 75 69 74

Based on: 10-K (reporting date: 2024-12-31), 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).

1 2024 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 8.81 = 41

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. Linde plc number of days of inventory outstanding deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024.

Average Receivable Collection Period

Linde plc, average receivable collection period calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data
Receivables turnover 7.14 6.96 7.32 6.84 6.54
Short-term Activity Ratio (no. days)
Average receivable collection period1 51 52 50 53 56
Benchmarks (no. days)
Average Receivable Collection Period, Competitors2
Sherwin-Williams Co. 38 39 42 43 41
Average Receivable Collection Period, Sector
Chemicals 46 47 47 49 50
Average Receivable Collection Period, Industry
Materials 34 39 39 40 44

Based on: 10-K (reporting date: 2024-12-31), 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).

1 2024 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 7.14 = 51

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover.

Operating Cycle

Linde plc, operating cycle calculation, comparison to benchmarks

No. days

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data
Average inventory processing period 41 44 37 36 41
Average receivable collection period 51 52 50 53 56
Short-term Activity Ratio
Operating cycle1 92 96 87 89 97
Benchmarks
Operating Cycle, Competitors2
Sherwin-Williams Co. 108 108 117 105 109
Operating Cycle, Sector
Chemicals 99 101 99 95 101
Operating Cycle, Industry
Materials 120 123 114 109 118

Based on: 10-K (reporting date: 2024-12-31), 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).

1 2024 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 41 + 51 = 92

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Operating cycle Equal to average inventory processing period plus average receivables collection period. Linde plc operating cycle deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024.

Average Payables Payment Period

Linde plc, average payables payment period calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data
Payables turnover 6.84 5.79 6.49 5.01 4.97
Short-term Activity Ratio (no. days)
Average payables payment period1 53 63 56 73 73
Benchmarks (no. days)
Average Payables Payment Period, Competitors2
Sherwin-Williams Co. 69 69 69 77 80
Average Payables Payment Period, Sector
Chemicals 60 65 61 74 76
Average Payables Payment Period, Industry
Materials 59 63 63 67 66

Based on: 10-K (reporting date: 2024-12-31), 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).

1 2024 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 6.84 = 53

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. Linde plc number of days of payables outstanding increased from 2022 to 2023 but then decreased significantly from 2023 to 2024.

Cash Conversion Cycle

Linde plc, cash conversion cycle calculation, comparison to benchmarks

No. days

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data
Average inventory processing period 41 44 37 36 41
Average receivable collection period 51 52 50 53 56
Average payables payment period 53 63 56 73 73
Short-term Activity Ratio
Cash conversion cycle1 39 33 31 16 24
Benchmarks
Cash Conversion Cycle, Competitors2
Sherwin-Williams Co. 39 39 48 28 29
Cash Conversion Cycle, Sector
Chemicals 39 36 38 21 25
Cash Conversion Cycle, Industry
Materials 61 60 51 42 52

Based on: 10-K (reporting date: 2024-12-31), 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).

1 2024 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 41 + 5153 = 39

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. Linde plc cash conversion cycle deteriorated from 2022 to 2023 and from 2023 to 2024.