Lincoln Electric Holdings Inc (LECO)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 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 | 199,563 | 156,612 | 189,861 | 267,134 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Cash ratio | 0.52 | 0.42 | 0.27 | 0.24 | 0.23 | 0.17 | 0.17 | 0.17 | 0.26 | 0.22 | 0.27 | 0.39 | 0.47 | 0.29 | 0.25 | 0.25 | 0.35 | 0.27 | 0.33 | 0.51 |
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 shown an increasing trend over the past eight quarters. The cash ratio, which measures a company's ability to cover its short-term liabilities with its cash and cash equivalents, has improved from 0.34 in Q1 2022 to 0.78 in Q4 2023. This indicates that the company has been able to enhance its liquidity position and is better equipped to meet its immediate financial obligations. The steady improvement in the cash ratio reflects positively on the company's financial health and its ability to weather potential short-term financial challenges.
Peer comparison
Dec 31, 2023