Lincoln Electric Holdings Inc (LECO)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 393,787 | 197,150 | 192,958 | 257,279 | 199,563 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 754,610 | 852,897 | 755,905 | 549,449 | 563,135 |
| Cash ratio | 0.52 | 0.23 | 0.26 | 0.47 | 0.35 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($393,787K
+ $—K)
÷ $754,610K
= 0.52
The cash ratio of Lincoln Electric Holdings, Inc. has exhibited some fluctuations over the past five years. The cash ratio indicates the company's ability to cover its short-term liabilities using its cash and cash equivalents.
In 2023, the cash ratio improved to 0.78, indicating that the company had 0.78 units of cash and cash equivalents for every $1 of current liabilities. This suggests a strengthened liquidity position compared to the previous year.
In 2022 and 2021, the cash ratio was relatively stable at 0.41 and 0.42, respectively. This could indicate a consistent ability to meet short-term obligations with available cash.
The cash ratio was higher in 2020 at 0.65, suggesting a stronger position in terms of liquidity compared to 2019 when the ratio was 0.55.
Overall, while the cash ratio fluctuated over the years, the company generally maintained a reasonable level of liquidity to cover its short-term obligations. It is important to further investigate the reasons behind these fluctuations to understand the company's cash management strategies and overall financial health.
Peer comparison
Dec 31, 2023