Lincoln Electric Holdings Inc (LECO)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 393,787 | 197,150 | 192,958 | 257,279 | 199,563 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 538,830 | 541,529 | 429,074 | 373,487 | 374,649 |
| Total current liabilities | US$ in thousands | 754,610 | 852,897 | 755,905 | 549,449 | 563,135 |
| Quick ratio | 1.24 | 0.87 | 0.82 | 1.15 | 1.02 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($393,787K
+ $—K
+ $538,830K)
÷ $754,610K
= 1.24
The quick ratio of Lincoln Electric Holdings, Inc. has shown fluctuations over the past five years. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets.
In 2023, the quick ratio improved significantly to 1.50, indicating that the company had $1.50 in liquid assets available to cover each $1 of current liabilities. This suggests a strong ability to meet short-term obligations without relying heavily on inventory.
Comparing this to previous years:
- In 2022, the quick ratio was 1.05, which indicates a lower liquidity position compared to 2023.
- In 2021, the quick ratio was 0.99, suggesting a slight weakening of the company's liquidity position.
- In 2020, the quick ratio increased to 1.33, reflecting an improvement in liquidity compared to 2021.
- In 2019, the quick ratio was 1.21, indicating a relatively stable liquidity position.
Overall, the trend in the quick ratio of Lincoln Electric Holdings, Inc. has been inconsistent over the past five years, with fluctuations reflecting changes in the company's ability to cover its short-term obligations with its liquid assets.
Peer comparison
Dec 31, 2023