Lincoln Electric Holdings Inc (LECO)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 377,262 | 393,787 | 197,150 | 192,958 | 257,279 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 878,802 | 754,610 | 852,897 | 755,905 | 549,449 |
| Quick ratio | 0.43 | 0.52 | 0.23 | 0.26 | 0.47 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($377,262K
+ $—K
+ $—K)
÷ $878,802K
= 0.43
The quick ratio of Lincoln Electric Holdings Inc has shown fluctuations over the past five years. As of December 31, 2020, the quick ratio stood at 0.47, indicating that the company had $0.47 of liquid assets for every dollar of current liabilities. However, in the following years, the ratio declined significantly to 0.26 as of December 31, 2021, and further to 0.23 as of December 31, 2022, which may raise concerns about the company's ability to meet its short-term obligations using its most liquid assets.
The trend reversed in the subsequent years, with the quick ratio improving to 0.52 as of December 31, 2023, and then to 0.43 as of December 31, 2024, suggesting an enhanced ability to cover current liabilities with quick assets. Despite the improvement in recent years, the quick ratio remains below 1, indicating that Lincoln Electric Holdings Inc may still face challenges in meeting its short-term obligations without relying on selling inventory or collecting receivables. Investors and stakeholders may continue to monitor the company's liquidity position to ensure it remains capable of meeting its financial obligations in the short term.
Peer comparison
Dec 31, 2024