L'Air Liquide Reduces Debt Burden While Maintaining Strong Financial Position
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L'Air Liquide has €10.9b of debt as of December 2023, down from €12.2b a year prior. It has €1.62b in cash against €9.24b in net debt.
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The company's liabilities totalling €18.6b are more than offset by its cash, receivables, and impressive €98.1b market cap. So debt does not seem a major threat.
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Its net debt is only 1.3 times EBITDA, and EBIT covers interest expense 15.8 times over, indicating debt is manageable.
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EBIT has increased 4.1% over 12 months, easing concerns over debt repayment ability.
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The company converts 60% of EBIT to free cash flow, putting it in good shape to pay down debt when appropriate.