Lincoln Electric Holdings Inc (LECO)
Number of days of payables
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Payables turnover | 10.17 | 9.29 | 7.86 | 7.11 | 7.05 | 7.36 | 6.42 | 6.11 | 6.56 | 6.66 | 6.21 | 6.20 | 6.95 | 8.01 | 8.17 | 7.89 | 7.31 | 8.18 | 7.80 | 7.91 | |
| Number of days of payables | days | 35.90 | 39.29 | 46.44 | 51.33 | 51.81 | 49.57 | 56.81 | 59.72 | 55.66 | 54.83 | 58.76 | 58.89 | 52.48 | 45.55 | 44.65 | 46.26 | 49.93 | 44.64 | 46.81 | 46.15 |
December 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 10.17
= 35.90
To analyze Lincoln Electric Holdings, Inc.'s number of days of payables, we observe a trend of fluctuating values over the past eight quarters. The number of days of payables has shown a general decrease from Q1 2022 to Q2 2023, indicating that the company is taking fewer days to pay its suppliers.
In Q4 2023, Lincoln Electric Holdings, Inc. had 43.57 days of payables, which represents a decrease from the previous quarter. This suggests that the company is managing its payable obligations more efficiently or possibly negotiating more favorable payment terms with suppliers.
The downward trend in the number of days of payables from Q1 2022 to Q4 2023 indicates that Lincoln Electric Holdings, Inc. is potentially improving its working capital management by optimizing its payment cycles. This could lead to improved liquidity and cash flow for the company.
However, it is essential to continue monitoring this metric in the future quarters to assess whether the trend of decreasing days of payables is sustainable and to understand the impact it may have on Lincoln Electric Holdings, Inc.'s overall financial health and relationships with suppliers.
Peer comparison
Dec 31, 2023