Lincoln Electric Holdings Inc (LECO)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,008,670 | 4,191,640 | 3,761,210 | 3,234,180 | 2,655,400 |
| Total current assets | US$ in thousands | 1,645,280 | 1,693,110 | 1,557,790 | 1,289,590 | 1,112,340 |
| Total current liabilities | US$ in thousands | 878,802 | 754,610 | 852,897 | 755,905 | 549,449 |
| Working capital turnover | 5.23 | 4.47 | 5.34 | 6.06 | 4.72 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $4,008,670K ÷ ($1,645,280K – $878,802K)
= 5.23
The working capital turnover of Lincoln Electric Holdings Inc has shown variability over the past five years. The ratio increased from 4.72 in December 31, 2020, to 6.06 in December 31, 2021, indicating an improvement in efficiency in utilizing its working capital to generate revenue. However, in the following years, the ratio fluctuated, with a peak of 6.06 in 2021 and a trough of 4.47 in 2023. Overall, the company's working capital turnover has been relatively stable, ranging between 4.47 and 6.06, with an average of 5.36 over the five-year period. This suggests that Lincoln Electric Holdings Inc has been effectively managing its working capital to support its operations and generate sales.
Peer comparison
Dec 31, 2024