Lincoln Electric Holdings Inc (LECO)
Quick 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 393,787 | 342,667 | 220,483 | 198,803 | 197,150 | 141,307 | 152,796 | 154,373 | 192,958 | 160,559 | 190,884 | 242,126 | 257,279 | 152,479 | 143,055 | 163,375 | 199,563 | 156,612 | 189,861 | 267,134 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 538,830 | 537,637 | 570,294 | 573,467 | 541,529 | 463,106 | 518,371 | 516,231 | 429,074 | 443,054 | 457,454 | 431,350 | 373,487 | 373,044 | 339,102 | 385,673 | 374,649 | 395,355 | 428,353 | 423,187 |
| 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 |
| 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 |
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, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio above 1 indicates that a company has enough liquid assets to cover its current liabilities.
Based on the data provided for Lincoln Electric Holdings, Inc., the quick ratio has shown a consistent improvement over the quarters, starting at 0.89 in Q1 2022 and steadily increasing to 1.50 in Q4 2023. This indicates a positive trend in the company's liquidity position.
The quick ratio exceeding 1 in all quarters of 2022 and 2023 suggests that Lincoln Electric Holdings, Inc. has had more than enough liquid assets to meet its short-term obligations during these periods. This is a positive sign of financial health and indicates the company's ability to cover its current liabilities with ease.
Overall, the upward trend in Lincoln Electric Holdings, Inc.'s quick ratio demonstrates improved liquidity and a strong ability to meet short-term obligations, which is favorable for the company's financial stability and operational efficiency.
Peer comparison
Dec 31, 2023