Lincoln Electric Holdings Inc (LECO)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,174,950 | 3,761,210 | 3,234,180 | 2,655,400 | 3,003,270 |
| Property, plant and equipment | US$ in thousands | 575,316 | 544,871 | 511,744 | 522,092 | 529,344 |
| Fixed asset turnover | 7.26 | 6.90 | 6.32 | 5.09 | 5.67 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $4,174,950K ÷ $575,316K
= 7.26
Fixed asset turnover is an important ratio that indicates how efficiently a company generates revenue from its investment in fixed assets. In the case of Lincoln Electric Holdings, Inc., the fixed asset turnover has been steadily increasing over the past five years, from 5.67 in 2019 to 7.29 in 2023.
This improvement signifies that the company is efficiently utilizing its fixed assets to generate sales. A higher fixed asset turnover ratio indicates that Lincoln Electric Holdings, Inc. is generating more revenue per dollar invested in fixed assets. This could be the result of better asset management, increased productivity, or improved operational efficiency over the years.
Overall, the trend of increasing fixed asset turnover for Lincoln Electric Holdings, Inc. suggests that the company is effectively leveraging its fixed assets to drive revenue growth and maximize operational efficiency. It reflects positively on the company's ability to efficiently utilize its assets to generate sales and create value for shareholders.
Peer comparison
Dec 31, 2023