Lincoln Electric Holdings Inc (LECO)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 3,499,770 | 2,480,450 | 2,165,580 | 1,784,060 | 1,995,680 |
| Payables | US$ in thousands | 325,435 | 352,079 | 330,230 | 256,530 | 273,002 |
| Payables turnover | 10.75 | 7.05 | 6.56 | 6.95 | 7.31 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $3,499,770K ÷ $325,435K
= 10.75
The payables turnover ratio of Lincoln Electric Holdings, Inc. has shown a fluctuating trend over the past five years. In 2023, the company's payables turnover ratio improved significantly to 8.38, compared to 7.05 in 2022. This indicates that the company is paying its suppliers more frequently in 2023, possibly managing its payables more effectively.
However, when looking at the historical data, the payables turnover ratio in 2023 is higher than in 2021 and 2020 but lower than in 2019. This suggests that Lincoln Electric Holdings, Inc. might have previously been more efficient in paying its suppliers compared to the most recent year.
Overall, a higher payables turnover ratio signifies that the company is paying off its suppliers quickly, which could indicate good liquidity management or favorable relationships with suppliers. It is essential to consider other factors such as industry norms and company strategy to fully understand the implications of changes in the payables turnover ratio for Lincoln Electric Holdings, Inc.
Peer comparison
Dec 31, 2023