Lincoln Electric Holdings Inc (LECO)

Receivables 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
Revenue (ttm) US$ in thousands 4,188,990 4,038,874 3,953,564 3,875,103 3,761,211 3,674,528 3,545,742 3,402,607 3,234,180 3,083,723 2,946,157 2,710,430 2,655,400 2,697,913 2,759,808 2,946,089 3,003,272 3,010,792 3,017,108 3,030,152
Receivables US$ in thousands 538,830 537,637 570,294 573,467 541,529 463,106 518,371 516,231 429,074 443,054 457,454 431,350 373,487 373,044 339,102 385,673 374,649 395,355 428,353 423,187
Receivables turnover 7.77 7.51 6.93 6.76 6.95 7.93 6.84 6.59 7.54 6.96 6.44 6.28 7.11 7.23 8.14 7.64 8.02 7.62 7.04 7.16

December 31, 2023 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $4,188,990K ÷ $538,830K
= 7.77

The receivables turnover ratio for Lincoln Electric Holdings, Inc. has been relatively stable over the past eight quarters, ranging from 6.59 to 7.93. This ratio measures how efficiently the company collects cash from its credit sales within a specific period. A higher turnover ratio indicates that the company is collecting its receivables more quickly.

In the latest quarter, Q4 2023, the receivables turnover was 7.78, which suggests that Lincoln Electric Holdings improved its collection efficiency compared to the previous quarter.

Overall, the company has maintained a healthy level of receivables turnover, indicating effective management of credit sales and collection processes. However, it is essential for the company to continuously monitor and improve its receivables turnover to ensure optimal cash flow and liquidity management.


Peer comparison

Dec 31, 2023

Company name
Symbol
Receivables turnover
Lincoln Electric Holdings Inc
LECO
7.77
SPX Corp
SPXC
6.12