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