Lincoln Electric Holdings Inc (LECO)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,174,950 | 3,761,210 | 3,234,180 | 2,655,400 | 3,003,270 |
| Total current assets | US$ in thousands | 1,693,110 | 1,557,790 | 1,289,590 | 1,112,340 | 1,075,580 |
| Total current liabilities | US$ in thousands | 754,610 | 852,897 | 755,905 | 549,449 | 563,135 |
| Working capital turnover | 4.45 | 5.34 | 6.06 | 4.72 | 5.86 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $4,174,950K ÷ ($1,693,110K – $754,610K)
= 4.45
The working capital turnover for Lincoln Electric Holdings, Inc. has exhibited fluctuations over the past five years.
In 2023, the working capital turnover ratio was 4.47, indicating that the company generated $4.47 in revenue for every dollar of working capital employed during the year. This ratio decreased from the previous year, suggesting a decrease in efficiency in utilizing working capital to generate sales.
In contrast, in 2021, the company's working capital turnover ratio was 6.06, reflecting a higher efficiency in generating sales relative to the investment in working capital. This was the highest turnover ratio observed in the provided data.
Overall, the company's working capital turnover ratio has shown variability over the years, moving between 4.47 and 6.06. It is important for Lincoln Electric Holdings, Inc. to closely monitor and manage its working capital efficiency to ensure optimal utilization of resources in generating revenue.
Peer comparison
Dec 31, 2023