Lincoln Electric Holdings Inc (LECO)
Payables turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 3,308,777 | 3,051,261 | 2,815,210 | 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 | 1,995,685 | 1,993,840 | 1,986,955 | 1,999,764 |
| Payables | US$ in thousands | 325,435 | 328,460 | 358,160 | 361,236 | 352,079 | 329,890 | 364,495 | 369,415 | 330,230 | 309,202 | 317,771 | 294,062 | 256,530 | 226,494 | 226,799 | 248,335 | 273,002 | 243,837 | 254,814 | 252,840 |
| 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 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $3,308,777K ÷ $325,435K
= 10.17
The payables turnover ratio for Lincoln Electric Holdings, Inc. has shown a generally increasing trend over the recent quarters, indicating a more efficient management of the company's accounts payable. This ratio measures how quickly the company pays its suppliers.
In Q4 2023, the payables turnover ratio reached 8.38, showing a significant improvement compared to the previous quarter. This could imply that Lincoln Electric Holdings, Inc. is able to manage its payables more effectively, potentially negotiating better credit terms or taking advantage of discounts for early payments.
Throughout 2022, the payables turnover ratio fluctuated but generally remained above 6, indicating that the company was already efficient in managing its payables. The increase seen in 2023 suggests a further enhancement in the company's ability to handle its accounts payable.
Overall, the increasing trend in the payables turnover ratio for Lincoln Electric Holdings, Inc. reflects positively on the company's financial management and liquidity position.
Peer comparison
Dec 31, 2023