Lincoln Electric Holdings Inc (LECO)
Inventory turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 2,535,728 | 2,569,803 | 2,605,706 | 2,654,769 | 2,726,191 | 2,661,657 | 2,619,795 | 2,568,766 | 2,480,451 | 2,429,095 | 2,341,655 | 2,257,992 | 2,165,575 | 2,058,521 | 1,973,740 | 1,822,644 | 1,784,059 | 1,814,892 | 1,853,823 | 1,959,601 |
| Inventory | US$ in thousands | 544,037 | 612,412 | 582,730 | 567,279 | 562,864 | 612,338 | 674,754 | 664,599 | 665,451 | 632,376 | 639,393 | 599,781 | 539,919 | 524,433 | 477,677 | 415,901 | 381,258 | 396,214 | 417,525 | 398,248 |
| Inventory turnover | 4.66 | 4.20 | 4.47 | 4.68 | 4.84 | 4.35 | 3.88 | 3.87 | 3.73 | 3.84 | 3.66 | 3.76 | 4.01 | 3.93 | 4.13 | 4.38 | 4.68 | 4.58 | 4.44 | 4.92 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,535,728K ÷ $544,037K
= 4.66
Inventory turnover is a vital financial ratio that reflects how efficiently a company manages its inventory. For Lincoln Electric Holdings Inc, the inventory turnover ratio has been fluctuating over the years.
From March 31, 2020, to December 31, 2024, the inventory turnover ratio ranged from 3.66 to 4.84. A decreasing trend in inventory turnover may indicate that inventory levels are growing or sales are declining. On the contrary, an increasing trend suggests that the company is selling its inventory more rapidly.
In the most recent period, as of December 31, 2024, the inventory turnover ratio stood at 4.66, which indicates that Lincoln Electric Holdings Inc turned over its inventory 4.66 times during the period. This implies that the company efficiently manages its inventory levels and is able to quickly sell its products.
Overall, while the inventory turnover ratio for Lincoln Electric Holdings Inc has shown some variability, it appears to be within a reasonable range, reflecting effective inventory management practices.
Peer comparison
Dec 31, 2024
Dec 31, 2024