Lincoln Electric Holdings Inc (LECO)
Gross profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 1,472,910 | 1,477,700 | 1,280,760 | 1,068,600 | 871,341 |
| Revenue | US$ in thousands | 4,008,670 | 4,191,640 | 3,761,210 | 3,234,180 | 2,655,400 |
| Gross profit margin | 36.74% | 35.25% | 34.05% | 33.04% | 32.81% |
December 31, 2024 calculation
Gross profit margin = Gross profit ÷ Revenue
= $1,472,910K ÷ $4,008,670K
= 36.74%
Based on the data provided, the gross profit margin of Lincoln Electric Holdings Inc has been showing a consistent upward trend over the years. In December 2020, the gross profit margin was 32.81%, which increased to 33.04% by December 2021. This upward trajectory continued in subsequent years, with the margin reaching 34.05% in December 2022, 35.25% in December 2023, and further improving to 36.74% by December 2024.
This steady increase in the gross profit margin indicates that Lincoln Electric Holdings Inc has been effectively managing its production costs and pricing strategies to improve profitability. A rising gross profit margin is generally a positive sign, as it suggests that the company is generating more profit from its core operations after accounting for the cost of goods sold.
Overall, the improving trend in the gross profit margin demonstrates the company's ability to enhance operational efficiency and maintain profitability over the years. However, it is important to continue monitoring this ratio in conjunction with other financial metrics to get a holistic view of the company's financial performance.
Peer comparison
Dec 31, 2024