Lincoln Electric Holdings Inc (LECO)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 377,262 | 404,218 | 272,672 | 374,978 | 393,787 | 342,667 | 220,483 | 198,803 | 197,150 | 141,307 | 152,796 | 154,373 | 192,958 | 160,559 | 190,884 | 242,126 | 257,279 | 152,479 | 143,055 | 163,375 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | 604,863 | — | — | — | — | — | — | — |
| 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 |
| Cash ratio | 0.43 | 0.42 | 0.35 | 0.50 | 0.52 | 0.42 | 0.27 | 0.24 | 0.23 | 0.17 | 0.17 | 0.17 | 1.06 | 0.22 | 0.27 | 0.39 | 0.47 | 0.29 | 0.25 | 0.25 |
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 of Lincoln Electric Holdings Inc has shown fluctuations over the observed period, ranging from as low as 0.17 to as high as 1.06. A cash ratio of 1.06 at December 31, 2021, indicates that the company had more than enough cash to cover its short-term liabilities at that point. However, the cash ratio decreased in subsequent periods, with the ratio hitting its lowest point of 0.17 at multiple points in the years 2022 and 2023. This suggests a potential liquidity concern during those periods.
Overall, the cash ratio provides insight into the company's ability to cover its short-term obligations solely with its cash and cash equivalents. It is crucial for investors and analysts to monitor this ratio to assess Lincoln Electric Holdings Inc's liquidity position and gauge its ability to meet its upcoming financial commitments.
Peer comparison
Dec 31, 2024