Lincoln Electric Holdings Inc (LECO)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,693,110 | 1,672,290 | 1,646,180 | 1,610,490 | 1,557,790 | 1,395,400 | 1,465,200 | 1,427,830 | 1,289,590 | 1,235,960 | 1,237,940 | 1,196,290 | 1,112,340 | 1,026,210 | 1,007,780 | 1,059,340 | 1,075,580 | 1,082,430 | 1,127,860 | 1,193,170 |
| 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 |
| Current ratio | 2.24 | 2.07 | 2.03 | 1.93 | 1.83 | 1.70 | 1.62 | 1.54 | 1.71 | 1.66 | 1.78 | 1.95 | 2.02 | 1.92 | 1.77 | 1.62 | 1.91 | 1.89 | 1.98 | 2.27 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,693,110K ÷ $754,610K
= 2.24
The current ratio of Lincoln Electric Holdings, Inc. has shown a general increasing trend over the past eight quarters, indicating an improvement in the company's short-term liquidity position. The current ratio has consistently been above 1, suggesting that the company has more than enough current assets to cover its current liabilities.
In the most recent quarter, Q4 2023, the current ratio reached 2.24, the highest level observed over the period analyzed. This demonstrates a strong ability of Lincoln Electric Holdings, Inc. to meet its short-term financial obligations using its current assets.
Additionally, the current ratio has steadily increased from 1.54 in Q1 2022 to 2.24 in Q4 2023, reflecting a strengthening financial position in terms of liquidity. This favorable trend implies that the company may be effectively managing its working capital and maintaining a healthy balance between current assets and liabilities.
Overall, the consistently improving current ratio of Lincoln Electric Holdings, Inc. suggests a positive outlook for the company's short-term liquidity and ability to meet its financial obligations.
Peer comparison
Dec 31, 2023