Lincoln Electric Holdings Inc (LECO)
Working capital 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 current assets | US$ in thousands | 1,693,110 | 1,672,290 | 1,646,180 | 1,610,490 | 1,557,790 | 1,395,400 | 1,465,200 | 1,427,830 | 1,289,590 | 1,235,960 | 1,237,940 | 1,196,290 | 1,112,340 | 1,026,210 | 1,007,780 | 1,059,340 | 1,075,580 | 1,082,430 | 1,127,860 | 1,193,170 |
| Total current liabilities | US$ in thousands | 754,610 | 808,142 | 810,762 | 835,939 | 852,897 | 820,328 | 903,683 | 927,652 | 755,905 | 745,420 | 696,020 | 614,461 | 549,449 | 533,161 | 568,571 | 654,822 | 563,135 | 572,437 | 571,011 | 525,527 |
| Working capital turnover | 4.46 | 4.67 | 4.73 | 5.00 | 5.34 | 6.39 | 6.31 | 6.80 | 6.06 | 6.29 | 5.44 | 4.66 | 4.72 | 5.47 | 6.28 | 7.28 | 5.86 | 5.90 | 5.42 | 4.54 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $4,188,990K ÷ ($1,693,110K – $754,610K)
= 4.46
The working capital turnover of Lincoln Electric Holdings, Inc. has shown a decreasing trend over the quarters analyzed. The company's ability to efficiently utilize its working capital to generate revenue has weakened from a high of 6.80 in Q1 2022 to a low of 4.47 in Q4 2023. This indicates that the company may be facing challenges in managing its working capital effectively to support its operations and generate sales. The decrease in the working capital turnover ratio may raise concerns about the company's liquidity and overall financial performance. Further analysis of the factors impacting working capital management and the efficiency of the company's operations is warranted to address this declining trend in working capital turnover.
Peer comparison
Dec 31, 2023