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Linde Financial Strength

: 6 (As of Jun. 2022)
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Linde has the Financial Strength Rank of 6.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Linde's Interest Coverage for the quarter that ended in Jun. 2022 was 323.60. Linde's debt to revenue ratio for the quarter that ended in Jun. 2022 was 0.47. As of today, Linde's Altman Z-Score is 3.44.


Competitive Comparison

For the Specialty Chemicals subindustry, Linde's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Linde Financial Strength Distribution

For the Chemicals industry and Basic Materials sector, Linde's Financial Strength distribution charts can be found below:

* The bar in red indicates where Linde's Financial Strength falls into.



Linde Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Linde's Interest Expense for the months ended in Jun. 2022 was $-5 Mil. Its Operating Income for the months ended in Jun. 2022 was $1,618 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $11,177 Mil.

Linde's Interest Coverage for the quarter that ended in Jun. 2022 is

Interest Coverage=-1*Operating Income (Q: Jun. 2022 )/Interest Expense (Q: Jun. 2022 )
=-1*1618/-5
=323.60

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Linde's Debt to Revenue Ratio for the quarter that ended in Jun. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(4866 + 11177) / 33828
=0.47

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Linde has a Z-score of 3.44, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 3.44 is strong.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Linde  (NYSE:LIN) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Linde has the Financial Strength Rank of 6.


Linde Financial Strength Related Terms

Thank you for viewing the detailed overview of Linde's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


Linde Business Description

Linde logo
Address
10 Riverview Drive, The Priestley Centre, The Surrey Research Park, Guilford, Surrey, GBR, GU2 7XY
Linde is the largest industrial gas supplier in the world, with operations in over 100 countries. The firm's main products are atmospheric gases (including oxygen, nitrogen, and argon) and process gases (including hydrogen, carbon dioxide, and helium), as well as equipment used in industrial gas production. Linde serves a wide variety of end markets, including chemicals, manufacturing, healthcare, and steelmaking. Linde generated approximately $31 billion in revenue and $5 billion in GAAP operating profit in 2021.
Executives
Strauss David P officer: Senior VP & Chief HR Officer 10 RIVERVIEW DRIVE DANBURY CT 06810
Bichara Guillermo officer: Senior VP& Chief Legal Officer 39 OLD RIDGEBURY ROAD DANBURY CT 06810-5113
Weisser Alberto director
Kaeser Josef director HIGH TECH CAMPUS 60 EINDHOVEN P7 5656AG
Opfermann Andreas officer: Executive VP, Americas C/O LINDE THE PRIESTLEY CENTRE, 10 PRIESTLEY ROAD GUILDFORD, SURREY X0 GU2 7XY
Nowicki Juergen officer: Executive VP, Engineering C/O LINDE PLC THE PRIESTLEY CENTRE, 10 PRIESTLEY ROAD GUILDFORD, SURREY X0 GU2 7XY
Lamba Sanjiv officer: Chief Operating Officer THE PRIESTLEY CENTRE, 10 PRIESTLEY RD SURREY RESEARCH PARK GUILDFORD, SURREY X0 GU2 7XY
Angel Stephen F director, officer: Chief Executive Officer 39 OLD RIDGEBURY ROAD DANBURY CT 06810-5113
Menezes Eduardo F officer: Executive VP EMEA Gases C/O PRAXAIR, INC. 39 OLD RIDGEBURY ROAD DANBURY CT 06810-5113
Durbin Sean officer: Executive VP, EMEA C/O LINDE PLC THE PRIESTLEY CENTRE 10 PRIESTLEY ROAD GUILDFORD, SURREY X0 GU2 XY7
Panikar John officer: Executive VP, APAC 39 OLD RIDGEBURY ROAD DANBURY CT 06810-5113
White Matthew J officer: Chief Financial Officer C/O PRAXAIR, INC. 39 OLD RIDGEBURY ROAD DANBURY CT 12533
Galante Edward G director C/O EXXON MOBIL CORP 5959 LAS COLINAS BLVD IRVING TX 75039-2298
Enders Thomas director THE PRIESTLEY CENTRE, 10 PRIESTLEY ROAD THE SURREY RESEARCH PARK GUILDFORD, SURREY X0 GU2 7XY
Wood Robert L director C/O DOW CHEMICAL CO 2030 DOW CENTER MIDLAND MI 48674

Linde Headlines

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