Lincoln Electric Holdings Inc (LECO)
Total asset 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 |
| Total assets | US$ in thousands | 3,377,300 | 3,325,900 | 3,311,190 | 3,253,200 | 3,180,550 | 2,651,960 | 2,741,810 | 2,736,340 | 2,592,310 | 2,568,800 | 2,512,730 | 2,361,750 | 2,314,450 | 2,217,500 | 2,199,040 | 2,305,900 | 2,371,210 | 2,361,160 | 2,394,330 | 2,354,850 |
| Total asset turnover | 1.24 | 1.21 | 1.19 | 1.19 | 1.18 | 1.39 | 1.29 | 1.24 | 1.25 | 1.20 | 1.17 | 1.15 | 1.15 | 1.22 | 1.26 | 1.28 | 1.27 | 1.28 | 1.26 | 1.29 |
December 31, 2023 calculation
Total asset turnover = Revenue (ttm) ÷ Total assets
= $4,188,990K ÷ $3,377,300K
= 1.24
The total asset turnover ratio of Lincoln Electric Holdings, Inc. has been relatively stable over the past eight quarters, ranging from 1.18 to 1.39. This ratio indicates that the company generates $1.18 to $1.39 in revenue for every dollar of assets it holds. The higher the ratio, the more efficiently the company is utilizing its assets to generate sales.
During Q3 2022, the total asset turnover ratio peaked at 1.39, suggesting the company was exceptionally efficient in generating sales relative to its asset base. However, this ratio decreased gradually in subsequent quarters but remained above 1.20, indicating consistent operational efficiency.
Overall, Lincoln Electric Holdings, Inc. has maintained a healthy total asset turnover ratio, reflecting effective management of its assets to drive revenue generation. Further analysis of trends in both revenue and assets may provide additional insights into the company's operational performance and efficiency over time.
Peer comparison
Dec 31, 2023