Lincoln Electric Holdings Inc (LECO)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,645,280 | 1,693,110 | 1,557,790 | 1,289,590 | 1,112,340 |
| Total current liabilities | US$ in thousands | 878,802 | 754,610 | 852,897 | 755,905 | 549,449 |
| Current ratio | 1.87 | 2.24 | 1.83 | 1.71 | 2.02 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,645,280K ÷ $878,802K
= 1.87
The current ratio of Lincoln Electric Holdings Inc has exhibited some fluctuations over the past five years. As of December 31, 2020, the current ratio was 2.02, indicating a strong ability to cover its short-term obligations with current assets. However, by December 31, 2021, the current ratio decreased to 1.71, suggesting a potential decrease in liquidity or an increase in short-term liabilities relative to current assets.
Subsequently, the current ratio improved to 1.83 by December 31, 2022, but was below the 2020 level. This could signify some improvement in liquidity but still not back to the initial strong position. By December 31, 2023, the current ratio increased significantly to 2.24, indicating a substantial improvement in the company's ability to meet its short-term obligations with current assets.
However, by December 31, 2024, the current ratio declined to 1.87, showing a slight decrease in liquidity compared to the previous year. Overall, while there have been fluctuations in the current ratio, Lincoln Electric Holdings Inc generally maintained a current ratio above 1 throughout the period, indicating a generally healthy liquidity position to cover short-term obligations.
Peer comparison
Dec 31, 2024