Lincoln Electric Holdings Inc (LECO)

Liquidity ratios

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
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
Quick ratio 1.24 1.09 0.98 0.92 0.87 0.74 0.74 0.72 0.82 0.81 0.93 1.10 1.15 0.99 0.85 0.84 1.02 0.96 1.08 1.31
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

Lincoln Electric Holdings, Inc.'s liquidity ratios demonstrate an improving trend over the past eight quarters. The current ratio has steadily increased from 1.83 in Q4 2022 to 2.24 in Q4 2023, indicating the company's ability to cover its short-term obligations with its current assets has strengthened. Similarly, the quick ratio has shown a consistent uptrend, improving from 1.05 in Q4 2022 to 1.50 in Q4 2023, suggesting that the company has become more efficient at meeting its immediate liquidity needs without relying on inventory.

Furthermore, the cash ratio has also shown a positive trajectory, increasing from 0.41 in Q4 2022 to 0.78 in Q4 2023. This indicates that the company's cash position relative to its current liabilities has improved significantly, which may enhance its ability to weather any financial difficulties or take advantage of strategic opportunities that require readily available funds.

Overall, Lincoln Electric Holdings, Inc.'s liquidity ratios reflect a healthy financial position, with an increasing ability to meet its short-term obligations and maintain sufficient liquidity to support its operations.

Additional liquidity measure

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 conversion cycle days 73.14 82.55 93.70 97.12 98.66 91.45 96.21 92.61 83.77 90.60 86.25 82.49 76.86 84.60 82.40 75.71 67.62 78.55 78.08 73.41

The cash conversion cycle of Lincoln Electric Holdings, Inc. has fluctuated over the past eight quarters, indicating variability in the company's efficiency in managing cash flow and working capital.

In Q1 2023, the cash conversion cycle was at its lowest point, standing at 97.12 days, suggesting that the company was able to convert its investments in inventory, accounts receivable, and accounts payable into cash more quickly compared to other quarters. Conversely, in Q2 2023, the cash conversion cycle increased to 96.59 days, indicating a slight slowdown in the company's cash conversion efficiency.

Overall, Lincoln Electric Holdings, Inc. experienced a mixed performance in its cash conversion cycle over the quarters, with fluctuations between periods of more efficient cash management and periods where the conversion process took longer. Monitoring and optimizing the cash conversion cycle can help the company enhance its financial performance and liquidity management in the future.