Lincoln Electric Holdings Inc (LECO)
Operating profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 636,462 | 717,849 | 612,336 | 357,039 | 282,071 |
| Revenue | US$ in thousands | 4,008,670 | 4,191,640 | 3,761,210 | 3,234,180 | 2,655,400 |
| Operating profit margin | 15.88% | 17.13% | 16.28% | 11.04% | 10.62% |
December 31, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $636,462K ÷ $4,008,670K
= 15.88%
To analyze Lincoln Electric Holdings Inc's operating profit margin over the years:
1. The operating profit margin increased from 10.62% in December 31, 2020, to 11.04% in December 31, 2021, showing a modest improvement in profitability.
2. Subsequently, there was a significant rise in the operating profit margin to 16.28% in December 31, 2022, and further to 17.13% in December 31, 2023, reflecting strong operational efficiency and effectiveness in managing costs.
3. However, there was a slight decline in the operating profit margin to 15.88% in December 31, 2024. This could indicate potential challenges in maintaining the peak levels of profitability achieved in the previous years.
Overall, Lincoln Electric Holdings Inc has demonstrated a positive trend in its operating profit margin, with notable improvements in recent years, suggesting effective cost management strategies and operational performance. It would be essential for the company to monitor and address factors contributing to the slight decline in 2024 to sustain profitability levels.
Peer comparison
Dec 31, 2024