Lincoln Electric Holdings Inc (LECO)
Working capital turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 4,007,387 | 4,043,867 | 4,093,318 | 4,132,638 | 4,191,620 | 4,064,044 | 3,966,074 | 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 |
| Total current assets | US$ in thousands | 1,645,280 | 1,757,100 | 1,613,110 | 1,679,750 | 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 |
| Total current liabilities | US$ in thousands | 878,802 | 951,336 | 783,567 | 748,873 | 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 |
| Working capital turnover | 5.23 | 5.02 | 4.93 | 4.44 | 4.47 | 4.70 | 4.75 | 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 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $4,007,387K ÷ ($1,645,280K – $878,802K)
= 5.23
Based on the provided data, Lincoln Electric Holdings Inc's working capital turnover has shown fluctuations over the time period. The working capital turnover ratio measures how effectively a company is utilizing its working capital to generate sales revenue.
The trend in the working capital turnover for Lincoln Electric Holdings Inc indicates a general decrease from a high of 7.28 in March 2020 to a low of 4.44 in March 2024, before experiencing a slight increase to 5.23 by December 2024. A higher turnover ratio is usually preferred as it suggests that the company is efficiently managing its working capital.
The analysis reveals that there has been some volatility in the working capital turnover ratio, with periods of both increase and decrease. This could be attributed to various factors such as changes in sales volume, inventory management efficiency, or accounts receivable and payable policies.
Overall, further assessment and comparison with industry benchmarks would be necessary to gain a more detailed understanding of Lincoln Electric Holdings Inc's working capital turnover efficiency and performance.
Peer comparison
Dec 31, 2024