Lincoln Electric Holdings Inc (LECO)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 377,262 | 393,787 | 197,150 | 192,958 | 257,279 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 878,802 | 754,610 | 852,897 | 755,905 | 549,449 |
| Cash ratio | 0.43 | 0.52 | 0.23 | 0.26 | 0.47 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($377,262K
+ $—K)
÷ $878,802K
= 0.43
The cash ratio for Lincoln Electric Holdings Inc has shown some fluctuations over the past five years. As of December 31, 2020, the cash ratio stood at 0.47, indicating that the company had $0.47 in cash and cash equivalents for every $1 of current liabilities. However, this ratio decreased to 0.26 by December 31, 2021, reflecting a potential decrease in the company's liquidity position.
Subsequently, the cash ratio further declined to 0.23 by December 31, 2022, signaling a potential strain on the company's ability to meet its short-term obligations with available cash resources. However, there was a significant improvement by December 31, 2023, where the cash ratio increased to 0.52, suggesting an enhanced liquidity position compared to the previous years.
By the end of December 31, 2024, the cash ratio dropped slightly to 0.43, indicating that Lincoln Electric Holdings Inc still had a reasonable level of cash reserves relative to its current liabilities but not as strong as in 2023. Overall, fluctuations in the cash ratio suggest varying levels of liquidity management by the company over the years.
Peer comparison
Dec 31, 2024