Lincoln Electric Holdings Inc (LECO)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 717,849 | 612,336 | 461,669 | 282,071 | 370,910 |
| Total assets | US$ in thousands | 3,377,300 | 3,180,550 | 2,592,310 | 2,314,450 | 2,371,210 |
| Operating ROA | 21.26% | 19.25% | 17.81% | 12.19% | 15.64% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $717,849K ÷ $3,377,300K
= 21.26%
Operating return on assets (Operating ROA) for Lincoln Electric Holdings, Inc. has shown a positive trend over the past five years. The company's ability to generate operating income from its assets has consistently improved, with the ratio increasing from 16.28% in 2019 to 20.92% in 2023. This indicates that Lincoln Electric is efficiently utilizing its assets to generate operating profits. The upward trend in operating ROA demonstrates the company's strong operational performance and effectiveness in generating profits relative to its asset base. Investors and stakeholders may view this trend positively as it reflects the company's ability to generate returns on investments in a sustainable manner.
Peer comparison
Dec 31, 2023