Lincoln Electric Holdings Inc (LECO)
Gross profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 1,465,440 | 1,280,760 | 1,068,600 | 871,341 | 1,007,590 |
| Revenue | US$ in thousands | 4,174,950 | 3,761,210 | 3,234,180 | 2,655,400 | 3,003,270 |
| Gross profit margin | 35.10% | 34.05% | 33.04% | 32.81% | 33.55% |
December 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $1,465,440K ÷ $4,174,950K
= 35.10%
The gross profit margin of Lincoln Electric Holdings, Inc. has shown a gradual increase from 33.55% in 2019 to 34.96% in 2023. This indicates that the company has been effectively managing its production costs and optimizing its pricing strategies to improve profitability on each dollar of sales. The consistent improvement in gross profit margin over the years reflects operational efficiency and potentially better pricing power within the industry. It suggests that Lincoln Electric has been successful in enhancing its production processes, controlling direct costs, and maintaining a competitive position in the market, which could positively impact the company's overall financial performance.
Peer comparison
Dec 31, 2023