Fourth Quarter 2023 Earnings Report
Non-GAAP Measures, continued
LINDE PLC AND SUBSIDIARIES
APPENDIX
NON-GAAP MEASURES AND RECONCILIATIONS
(Millions of dollars)
(UNAUDITED)
Linde
(Millions of dollars)
Q4
2023
Q3
Q2
Q1
Q4
Q3
2022
Q1
Q2
Free Cash Flow (FCF) - Free cash flow is a measure used by investors, financial analysts and management to evaluate the ability of a company to pursue opportunities that enhance shareholder value. FCF equals cash flow from operations less capital
expenditures.
Operating Cash Flow
Less: Capital Expenditures
Free Cash Flow
$
$
2,727 $
(1,151)
1,576 $
2,520 $
(948)
2,150 $
(859)
1,908 $
(829)
2,095 $
(936)
2,636 $
(762)
2,133 $
(826)
2,000
(649)
1,572 $
1,291 $
1,079 $
1,159 $
1,874 $
1,307 $
1,351
Net Debt - Net debt is a financial liquidity metric used by investors, financial analysts and management to evaluate the ability of a company to repay its debt and is calculated as total debt (excluding purchase accounting impacts) less liquid assets.
Debt
$
19,373 $
18,003 $
Less: Cash and cash equivalents
(4,664)
Net debt
14,709
(3,894)
14,109
17,490 $
(3,357)
14,133
18,777 $
(4,962)
13,815
17,914 $
(5,436)
12,478
15,338 $
16,043 $
16,456
(3,756)
(3,655)
11,582
12,388
Less: Purchase accounting impacts - Linde AG
Adjusted net debt
$
(7)
14,702 $
(8)
14,101 $
(10)
14,123 $
(13)
13,802 $
(22)
12,456 $
(28)
11,554 $
(38)
12,350 $
(4,464)
11,992
(50)
11,942
Less: Net assets held for sale
Adjusted net debt
$
14,702 $
14,101 $
14,123 $
13,802 $
12,456 $
11,554 $
12,350 $
11,942
After-tax Return on Capital and Adjusted After-tax Return on Capital (ROC) - After-tax return on capital is a measure used by investors, financial analysts and management to evaluate the return on net assets employed in the business. ROC
measures the after-tax operating profit that the company was able to generate with the investments made by all parties in the business (debt, noncontrolling interests and Linde plc shareholders' equity).
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